Palantir Technologies Inc. to new lows on the market. After six days of relentless selling it’s actually broken into bear market territory. This decline is now the company’s longest losing streak since April 2024. It comes on the heels of a broader market selloff. Palantir recently lauded successes all around, claiming it is on its first $1 billion revenue quarter and beating Wall Street projections. Its shares recently fell into correction territory, undergoing a 15% loss from record highs.
The decline in Palantir’s stock price coincides with a report from Citron Research, which described the company as “detached from fundamentals and analysis.” For this assessment, investors are sounding the alarm. Palantir’s forward price-to-earnings ratio is a staggering 193 times, making them even more uncomfortable. Inspiring visions Andrew Left of Citron Research recently made waves for comparing Palantir’s future prospects with those of OpenAI, currently valued at $500 billion. He explained that taking the same price-to-revenue multiple, Palantir’s shares would be valued at around $40.
Though Palantir only joined the S&P 500 last year, it quickly advanced to become one of the ten most valuable tech firms in the U.S. Today, it is a beacon of success as one of the 20 most valuable firms in its home state. The firm’s recent plunge into stocks illustrates a bigger story in the technology sector. Brent Thill of Jeffries noted that a good chunk of this drop is due to a tech pullback.
“Karp and his team should be proud. But for investors, that’s where discipline kicks in.” – Andrew Left, Citron Research
During the week of October 9 th , Palantir rang the bell for a historic milestone—its first revenue quarter above $1 billion. This success was combined with general optimism among analysts and investors, as the company seemed to be readying for a long period of hyper-growth. A September market selloff further shook investor confidence. Concurrently, stern judgments from skeptical Wall Street analysts have cast doubt on the company’s prospects going forward.
Left further elaborated on Palantir’s valuation challenges, stating, “Comparison is the enemy of happiness, and when measured against true AI leaders, Palantir’s price already reflects success beyond its fundamentals.” This view further highlights the challenges investors will have in assessing the company’s real value in a more competitive environment.
At the same time, some analysts are cautioning that investors could be severely punished from this artificially generated volatility. Sam Altman noted that “some investors will be left ‘very burnt’” as they navigate the fluctuating market conditions.