Palantir Slumps After Citron Targets Valuation

Palantir’s stock slid 9% on Tuesday to $157.91, giving back the strong gains it had posted earlier this month after beating Wall Street expectations and raising its full-year guidance. The drop marked the company’s fifth straight session in the red, leaving shares down 15.5% since August 13.

The slide coincided with a fresh short report from Citron Research, which argued that Palantir is trading at unsustainable levels. Citron pointed to OpenAI’s $500 billion valuation, noting that if Palantir’s stock were valued on a similar price-to-sales basis, shares would be closer to $40 — a steep fall from their recent highs above $159.

For Palantir, which has become a retail favorite in the AI-fueled rally, the critique has rekindled the debate over whether current valuations reflect genuine long-term growth or frothy investor enthusiasm.