The big short citron announced "shorting Palantir": valuation deviates from fundamentals, there is still a 70% downward adjustment space.

Citron Research, a well-known Wall Street short-selling institution, said that it was shorting Palantir, and Citron founder Andrew Left bluntly said that the reasonable range of Palantir’s stock price should fall in the $40 to $50 range, which is more than seventy percent downward revision space from the current market price. (Synopsis: “King of Bonds” Bill Gross: Don’t touch the meme stock boom!) But GameStop is now like Bitcoin) (Background added: Big Short Citron “Short Micro Strategy” Stock Price Plunges 20%: MSTR Has Completely Detached from Bitcoin Fundamentals) The artificial intelligence (AI) whirlwind has lifted many companies to unprecedented heights in 2025, with data analytics firm Palantir being one of the most striking examples. According to Google Finance data, Palantir stock has soared 139% so far this year, and has risen 480% in the past 1 year, with a market value of $429.2 billion. Citron Research, a well-known Wall Street short-seller, has recently said that it is short Palantir. Andrew Left, the founder of Citron, bluntly said that the reasonable range of Palantir’s share price should fall in the $40 to $50 range, which is more than seventy percent downward from the current market price. Left added that Palantir currently has a forward P/E ratio of more than 200 times, a price-to-sales ratio of about 120 times, and enterprise value divided by free cash flow even soared to 700 times. In the face of this series of sky-high multiples, he warned: “You can’t call yourself a data giant and ask investors to ignore valuation indicators and multiples.” Therefore, the core reason for the short position of Citron is that even if Palantir maintains 50% revenue growth and delivers 50% operating profit report card for five consecutive years, its valuation is still off the fundamentals. Three driving forces for the halo of AI stars However, after the news of Citron’s short sale, Palantir’s stock price has not been significantly affected in the near future. According to expert analysis, there are three main reasons why investors are willing to chase Palantir: First, the combination of military and government contracts with AI is the two hottest topics in the current market. Palantir has a long history of serving the U.S. government and allied security agencies, while bringing Foundry, Gotham and AIP platforms to the commercial realm, with a story of “hard defense” and “soft innovation”. Second, the earnings report is indeed bright. Palantir achieved revenue of $1.004 billion in the second quarter of 2025, up 48% year-over-year, and quarterly revenue exceeded the $1 billion mark. The U.S. market performed particularly well, with commercial revenue up 93% year-over-year to $306 million; Government revenue rose 53% to $426 million. Third, the AI boom and the national security moat, Palantir has created a strong “meme stock” attribute, attracting retail investors in communities such as Reddit to continue to fuel the wave. However, Andrew Left also reminded that Palantir is not without competitors, such as the upcoming Databricks, which also specializes in data analysis business, and its customers are more than Palantir, so this is one of the reasons for Citron to short Palantir. Palantir Technologies is an American data analytics and software company founded in 2003 focused on big data processing, artificial intelligence and data integration solutions. Its main platforms, Gotham and Foundry, help government agencies and large enterprises analyze complex data sets for defense, counterterrorism, and business optimization. Related reports Air Force Strong" Miner dumped BTC hit a 4-year high; Short institutional citron: ETH has as many flaws as SBF, continue to short Rich dad shouts Bitcoin $13 million! Support Michael Saylor’s prediction: Micro strategy is right Bitcoin hot money boom" Binance’s monthly trading volume reached 2 times that of the New York Stock Exchange, stablecoin inflows reached a record high, and Tether’s market value surpassed Citi [Big short citron announced “short Palantir”: valuation is divorced from fundamentals, and there is still 70% room for downward revision] This article was first published in BlockTempo’s “Dynamic Trend - The Most Influential Blockchain News Media”.