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.

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 Technologies Inc (NASDAQ:PLTR) shares are trading lower Wednesday as the stock continues to pull back following a strong run in recent weeks. Here's what you need to know.

The Citron Research bearish call follows comments from OpenAI CEO Sam Altman, who described the AI market as a bubble.

Palantir stock slightly gapped down on Wednesday, easily skating beneath the 50-day Simple Moving Average (SMA). This tells us that the bottom is unlikely to be near. The July 1 pullback near $130 is a possible level to watch as it sits close to the 100-day SMA.

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.

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.