Shares in Palantir fell as much as 9% in late trading on Tuesday amid a broad AI pullback and a critical short-seller report.

Palantir Technologies has created one of the most dramatic stories on Wall Street this year, defying conventional investment narratives. In 2025, it became the top-performing stock in the S&P 500, surging over 106% and at points climbing 144% from the start of the year—outpacing even AI heavyweights like Nvidia.

Short-seller Citron targets PLTR again, using a Databricks comparison to argue the stock is overvalued after its report sent shares falling.

Citron Research says Palantir stock at $40 per share would still be an expensive AI stock to own. Wall Street recommends caution on PLTR shares as well.

The drop began after a broader market pullback but escalated fast; short seller Citron Research issued a scathing note that accused the company of being detached from fundamentals and analysis. Citron's Andrew Left compared Palantir's price-to-revenue multiple with OpenAI's recent $500 billion valuation;

Palantir shares tumbled Tuesday afternoon, extending recent losses as a high-profile short seller fueled worries the stock could be overvalued after a strong run earlier this year.

Palantir shares fell in premarket trading on Wednesday, extending losses after a steep drop on Tuesday, according to Benzinga. Citron Research issued a bearish report claiming Palantir is overvalued and disconnected from fundamentals.

Palantir stock was the top trending ticker on the Stocktwits platform late Tuesday, even as the stock dropped for a fifth straight session. The losing streak comes amid short seller Citron Research, run by Andrew Left,