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Yahoo
2 hours ago
- Business
- Yahoo
Palantir Sinks as Short Seller Flags Lofty Valuation
This article first appeared on GuruFocus. Palantir (PLTR, Financials) fell more than 9% Tuesday, closing under $158 after a scathing report from short seller Andrew Left of Citron Research warned the stock could be worth just $40. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Despite more than doubling in 2025, making it the S&P 500's top performer this year, Palantir's valuation has come under fire. Left said the stock is trading far above its fundamentals and compared it to OpenAI's valuation multiples, arguing that even at $40 it would remain one of the priciest SaaS stocks ever. Wall Street seems to agree. Just two of eight analysts surveyed rate the stock a buy. Jefferies and HSBC both praised Palantir's growth but cautioned that the price may already reflect near-perfect expectations. Palantir has surged on AI optimism, but investor patience may be tested if growth doesn't catch up with hype.
Yahoo
2 hours ago
- Business
- Yahoo
Palantir stock falls 9%, extending losing streak to 5 trading days, as tech trade cools
Palantir (PLTR) stock fell more than 9.3% on Tuesday to mark a fifth straight losing session for shares as investors continue to rotate away from some of the hottest tech names that have powered stocks to all-time highs in 2025. Palantir stock rose more than 150% from its April low through its second quarter earnings report, which saw the company's revenue top $1 billion in a single quarter for the first time. Data from market data provider Barchart showed Tuesday's slide marked Palantir's longest losing streak since March. Palantir was also under pressure after a bearish report by short seller Citron Research published Monday predicted a price target of $40. The firm's founder, Andrew Left, called the target "generous." Citron said it derived its price target by comparing Palantir to OpenAI's ( recent $500 billion valuation as the ChatGPT giant looks to sell several billion dollars of stock. Palantir is not alone in seeing some investors move away from the stock in recent days. The Technology Select Sector SPDR Fund (XLK), which tracks technology stocks, fell more than 1.7% in Tuesday's trading session. AI superstar Nvidia (NVDA) ended the day down 3.5%, and its chip rival Advanced Micro Devices' (AMD) stock fell more than 5%. Meta (META) — which has thrown huge sums of capital expenditures into AI talent retention — saw shares down more than 2%. The tech sector as a whole has lost more than 2.4% over the past five sessions. The pressure on AI names comes at a moment when the broader market rally is starting to show signs of rotation beyond Big Tech. After months of concentration in a handful of growth giants, sectors like Health Care (XLV) and Homebuilders (XHB), along with small- and midcap stocks, have taken on a larger role in driving this summer's move to record highs. The sectors are up more than 4% and more than 3%, respectively, over the last five days. On Tuesday, leadership was concentrated in more defensive corners of the market, with Real Estate (XLRE), Utilities (XLU), Materials (XLB), Consumer Staples (XLP), and Health Care among the biggest gainers. But given Big Tech's outsized weighting in the index, if the group isn't leading, gains in the S&P 500 (^GSPC) are unlikely to be as sharp or one-sided as they've been over the past two years — a dynamic on display in Tuesday's trading as the S&P 500 ended the session down more than 0.5%. The tech-heavy Nasdaq (^IXIC) also took on heavy losses, falling nearly 1.5% by the closing bell. Some strategists, however, see this shift as a healthier sign for markets. Citi strategist Scott Chronert framed the moment as "two parallel paths" for the S&P 500 — one still led by AI-fueled growth giants and the other increasingly supported by more traditional, economically tied sectors. "The simple answer is that we see ongoing Mega Cap Growth participation, if not leadership, but with fundamental and performance broadening creating a more durable structural setup," Chronert wrote in a Friday note. "The healthiest path to higher index levels is a combination of Growth/Tech leadership persisting but with other areas of the market additive more so than has been the case this past year." Correction: A previous version of this article misspelled the name of Citron Research founder Andrew Left. We regret the error. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Yahoo
2 hours ago
- Business
- Yahoo
Palantir Sinks as Short Seller Flags Lofty Valuation
This article first appeared on GuruFocus. Palantir (PLTR, Financials) fell more than 9% Tuesday, closing under $158 after a scathing report from short seller Andrew Left of Citron Research warned the stock could be worth just $40. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Despite more than doubling in 2025, making it the S&P 500's top performer this year, Palantir's valuation has come under fire. Left said the stock is trading far above its fundamentals and compared it to OpenAI's valuation multiples, arguing that even at $40 it would remain one of the priciest SaaS stocks ever. Wall Street seems to agree. Just two of eight analysts surveyed rate the stock a buy. Jefferies and HSBC both praised Palantir's growth but cautioned that the price may already reflect near-perfect expectations. Palantir has surged on AI optimism, but investor patience may be tested if growth doesn't catch up with hype. Sign in to access your portfolio
Yahoo
6 hours ago
- Business
- Yahoo
Palantir stock falls 9%, extending losing streak to 5 trading days, as tech trade cools
Palantir (PLTR) stock fell more than 9.3% on Tuesday to mark a fifth straight losing session for shares as investors continue to rotate away from some of the hottest tech names that have powered stocks to all-time highs in 2025. Palantir stock rose more than 150% from its April low through its second quarter earnings report, which saw the company's revenue top $1 billion in a single quarter for the first time. Data from market data provider Barchart showed Tuesday's slide marked Palantir's longest losing streak since March. Palantir was also under pressure after a bearish report by short seller Citron Research published Monday predicted a price target of $40. The firm's founder, Andrew Left, called the target "generous." Citron said it derived its price target by comparing Palantir to OpenAI's ( recent $500 billion valuation as the ChatGPT giant looks to sell several billion dollars of stock. Palantir is not alone in seeing some investors move away from the stock in recent days. The Technology Select Sector SPDR Fund (XLK), which tracks technology stocks, fell more than 1.7% in Tuesday's trading session. AI superstar Nvidia (NVDA) ended the day down 3.5%, and its chip rival Advanced Micro Devices' (AMD) stock fell more than 5%. Meta (META) — which has thrown huge sums of capital expenditures into AI talent retention — saw shares down more than 2%. The tech sector as a whole has lost more than 2.4% over the past five sessions. The pressure on AI names comes at a moment when the broader market rally is starting to show signs of rotation beyond Big Tech. After months of concentration in a handful of growth giants, sectors like Health Care (XLV) and Homebuilders (XHB), along with small- and midcap stocks, have taken on a larger role in driving this summer's move to record highs. The sectors are up more than 4% and more than 3%, respectively, over the last five days. On Tuesday, leadership was concentrated in more defensive corners of the market, with Real Estate (XLRE), Utilities (XLU), Materials (XLB), Consumer Staples (XLP), and Health Care among the biggest gainers. But given Big Tech's outsized weighting in the index, if the group isn't leading, gains in the S&P 500 (^GSPC) are unlikely to be as sharp or one-sided as they've been over the past two years — a dynamic on display in Tuesday's trading as the S&P 500 ended the session down more than 0.5%. The tech-heavy Nasdaq (^IXIC) also took on heavy losses, falling nearly 1.5% by the closing bell. Some strategists, however, see this shift as a healthier sign for markets. Citi strategist Scott Chronert framed the moment as "two parallel paths" for the S&P 500 — one still led by AI-fueled growth giants and the other increasingly supported by more traditional, economically tied sectors. "The simple answer is that we see ongoing Mega Cap Growth participation, if not leadership, but with fundamental and performance broadening creating a more durable structural setup," Chronert wrote in a Friday note. "The healthiest path to higher index levels is a combination of Growth/Tech leadership persisting but with other areas of the market additive more so than has been the case this past year." Correction: A previous version of this article misspelled the name of Citron Research founder Andrew Left. We regret the error. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Yahoo
19 hours ago
- Business
- Yahoo
Why Palantir Stock Is Tumbling Tuesday
Palantir (PLTR) 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. The shares were down 9% around $158 in recent trading. Still, they've more than doubled in value in 2025, leaving Palantir the best-performing stock in the S&P 500 for the year so far as demand for the data analytics software company's Artificial Intelligence Platform drives record sales. Short seller Andrew Left of Citron Research, who voiced concerns about the stock's valuation in a Fox Business interview last Wednesday, said in a report yesterday that he believes the stock has become "detached from fundamentals" and would be worth $40. The report compares Palantir to OpenAI, and posits that if Palantir were to trade at the same price-to-revenue multiple as the ChatGPT maker, given Bloomberg consensus projections, Palantir's stock price would be closer to $40. However, "even that price would leave Palantir among the most expensive [software as a service] names in history," Left said. Left, whose sharp commentary and claimed track record of exposing fraud and overvaluation have earned him the moniker "The Bounty Hunter of Wall Street," has become a controversial figure and faces criminal charges for securities fraud. Still, he's not the only one who's raised concerns about Palantir's lofty valuation. Of the eight Wall Street analysts with current ratings surveyed by Visible Alpha, just two have issued "buy" recommendations versus six "hold" ratings, amid some concerns the stock may have climbed too high, too fast, and could be due for a drawback. Jefferies analysts, who applauded Palantir's strong revenue growth and outlook after the company reported results earlier this month, said they still believe the stock's valuation is "disconnected from even optimistic growth scenarios." HSBC analysts, who have a neutral rating for the stock, also warned it might already be "priced for perfection" and could struggle to keep up with investors' high expectations. Read the original article on Investopedia Sign in to access your portfolio
