Palantir shares sank into bear market territory Wednesday after six-straight days of heavy selling.
The slide marks the longest such streak for the artificial intelligence software company since April 2024, and brings shares down 20% from the recent record. Shares closed in correction territory on Tuesday after accumulating a 15% loss from the highs.
Palantir’s slide followed a broader market selloff and came on the heels of a short-seller report from Andrew Left’s Citron Research. He called the company “detached from fundamentals and analysis” and said shares should be priced at $40 if compared to the same price-to-revenue multiple in OpenAI’s recent $500 billion valuation.
“Karp and his team should be proud. But for investors, that’s where discipline kicks in,” Left wrote. “Comparison is the enemy of happiness, and when measured against true AI leaders, Palantir’s price already reflects success beyond its fundamentals.”
Earlier this month, Palantir rocketed to record highs after it posted a first $1 billion-revenue quarter and blew past Wall Street quarterly estimates.
The company has got a major boost from the AI boom and snatched up government contracts, including with the Department of Defense.
This year alone, the company became a member of the top 10 U.S. tech firms and 20 most valuable U.S. companies. Last year, the company joined the S&P 500.
But even with the recent price drop, its forward price-to-earnings ratio of 193 times means shares are expensive, especially when compared to megacap peers.
In this articlePLTRFollow your favorite stocksCREATE FREE ACCOUNTPalantir shares sank into bear market territory Wednesday after six-straight days of heavy selling.The slide marks the longest such streak for the artificial intelligence software company since April 2024, and brings shares down 20% from the recent record. Shares closed in correction territory on Tuesday after accumulating a 15% loss from the highs.Palantir’s slide followed a broader market selloff and came on the heels of a short-seller report from Andrew Left’s Citron Research. He called the company “detached from fundamentals and analysis” and said shares should be priced at $40 if compared to the same price-to-revenue multiple in OpenAI’s recent $500 billion valuation.”Karp and his team should be proud. But for investors, that’s where discipline kicks in,” Left wrote. “Comparison is the enemy of happiness, and when measured against true AI leaders, Palantir’s price already reflects success beyond its fundamentals.”Read more CNBC tech newsSilicon Valley’s AI deals are creating zombie startups: ‘You hollowed out the organization’OpenAI launches cheapest ChatGPT plan at $4.6, starting in IndiaAnalysts downplay AI bubble worries as Altman says some investors will be left ‘very burnt’Intel is getting a $2 billion investment from SoftBankEarlier this month, Palantir rocketed to record highs after it posted a first $1 billion-revenue quarter and blew past Wall Street quarterly estimates. The company has got a major boost from the AI boom and snatched up government contracts, including with the Department of Defense.This year alone, the company became a member of the top 10 U.S. tech firms and 20 most valuable U.S. companies. Last year, the company joined the S&P 500.But even with the recent price drop, its forward price-to-earnings ratio of 193 times means shares are expensive, especially when compared to megacap peers.Palantir one-month stock chart.WATCH: ‘Fast Money’ traders on Big Tech bottoming out in Tuesday’s tradingAdblock test (Why?)
US Top News and Analysis
