US stock futures flounder amid tech weakness, Fed caution
Investing.com -- Palantir Technologies (NYSE:NASDAQ:PLTR) stock fell 2% Monday morning after short seller Citron Research expressed caution about the company’s valuation for the second time.
The decline follows comments from OpenAI CEO Sam Altman, who stated that the AI market is in a bubble. This assessment from the leader of what is now valued as a $500 billion company has raised questions about the sustainability of AI-related stock valuations.
Citron Research, led by Andrew Left, had previously suggested that Palantir would start to look cheap at $40 per share during an appearance on Fox Business. However, the short seller has now revised that stance, arguing that even at that price, the stock would remain expensive.
The short seller’s analysis compares Palantir to OpenAI, noting that if Palantir were to trade at the same 17x price-to-revenue multiple as OpenAI (based on Bloomberg consensus estimates of $5.6 billion in 2026 revenue), the implied stock price would be about $40 per share. Citron argues this multiple would still make Palantir one of the most expensive SaaS stocks.
Citron also highlighted 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."
The report further questions Palantir’s competitive position against established software giants like Microsoft (NASDAQ:MSFT) and Databricks in the enterprise space, suggesting the company faces significant challenges in maintaining its growth trajectory.
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