The famous short-selling firm Citron Research has openly stated that they are shorting Palantir. Citron's founder, Andrew Left, bluntly asserted that Palantir's stock price should reasonably fall within the range of $40 to $50, which is over a 70% correction from the current market price. (Background summary: 'Bond King' Bill Gross: Don't touch meme stocks! But GameStop now resembles Bitcoin) (Background information: The big short Citron sees 'MicroStrategy' stock price plummet by 20%: MSTR has completely detached from Bitcoin fundamentals) The artificial intelligence (AI) whirlwind has elevated many companies to unprecedented heights by 2025, and data analytics firm Palantir is one of the most notable examples. According to Google Finance data, Palantir's stock has surged by 139% year-to-date, with an increase of 480% over the past year, reaching a market capitalization of $429.2 billion. Citron warns: Palantir's valuation and growth rate are too disparate. However, despite being highly sought after by the market, Citron Research has recently announced that they are shorting Palantir. Andrew Left stated that Palantir's stock price should reasonably fall within the range of $40 to $50, which is over a 70% correction from the current market price. Left further explained that Palantir's forward price-to-earnings ratio has exceeded 200 times, the price-to-sales ratio is around 120 times, and the enterprise value to free cash flow has even skyrocketed to 700 times. In the face of these exorbitant multiples, he warned: "You cannot call yourself a data giant while asking investors to ignore valuation metrics and multiples." Therefore, Citron's core reason for shorting is that even if Palantir maintains a 50% revenue growth for five consecutive years and delivers a 50% operating profit, its valuation is still detached from fundamentals. The three main drivers of AI's star halo. However, after the news of Citron's shorting was released, Palantir's stock price has not been significantly affected. Experts analyze that investors are willing to drive up Palantir's stock for three main reasons: First, military and government contracts combined with AI are currently the two hottest topics in the market. Palantir has long served U.S. government and allied security agencies while pushing its Foundry, Gotham, and AIP platforms into the commercial sector, embodying both 'hard national defense' and 'soft innovation.' Second, the financial reports are indeed impressive. Palantir achieved $1.004 billion in revenue in the second quarter of 2025, a year-on-year increase of 48%, breaking the $1 billion quarterly revenue mark. Performance in the U.S. market is particularly outstanding, with business revenue growing by 93% year-on-year to $306 million; government revenue increased by 53% to $426 million. Third, the AI boom combined with national security moats has given Palantir a strong 'meme stock' attribute, attracting retail investors from communities like Reddit to continue to rally support. However, Andrew Left also reminded that Palantir is not without competitors, such as the soon-to-be-listed Databricks, which is also specialized in data analytics and has more customers than Palantir. Therefore, this is also one of the reasons Citron is shorting Palantir. Palantir Technologies is an American data analytics and software company founded in 2003, focusing on big data processing, artificial intelligence, and data integration solutions. Its main platforms, Gotham and Foundry, help government agencies and large enterprises analyze complex datasets, applied in areas such as defense, counter-terrorism, and business optimization. Related reports: The Air Force is strong) Miners dump BTC to create a 4-year high; short-selling firm Citron: ETH and SBF have many flaws, continue to short. Rich dad calls Bitcoin $13 million! Supporting Michael Saylor's prediction: MicroStrategy is right. Bitcoin hot money wave) Binance's monthly trading volume reaches twice that of the NYSE, stablecoin inflows hit a new high, Tether's market cap surpasses Citigroup.

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