Palantir Technologies (NYSE:PLTR) slipped 2% Monday morning following a cautious assessment from short seller Citron Research regarding the company’s stock valuation, marking the second time the firm has raised concerns.
The decline comes in the wake of remarks from OpenAI CEO Sam Altman, who warned that the AI market is in a bubble. This statement, from the leader of a company now valued around $500 billion, has prompted scrutiny over the sustainability of AI-related stock valuations.
Previously, Citron Research, led by Andrew Left, had suggested that Palantir might begin to look cheap at $40 per share during a Fox Business appearance. The firm has since updated its view, arguing that even at that level, the stock would remain expensive.
Citron’s analysis compares Palantir to OpenAI, noting that if the company were valued at the same 17x price-to-revenue multiple as OpenAI (based on Bloomberg consensus estimates of $5.6 billion in 2026 revenue), the implied share price would be around $40 per share. The firm asserts that this multiple would still make Palantir one of the most expensive SaaS stocks.
The report also flagged concerns about insider selling, noting that CEO Alex Karp has sold nearly $2 billion in Palantir shares over the past two years, making him “one of tech’s most aggressive insider sellers.”
Finally, Citron questioned Palantir’s competitive position against established enterprise software giants like Microsoft (NASDAQ:MSFT) and Databricks, suggesting the company may face significant challenges in maintaining its growth trajectory.
Palantir Technologies stock price
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