Palantir stock seems unstoppable this year, but its astronomical rally has drawn the eye of at least one renowned short-seller.
Andrew Left, founder of Citron Research, told Fox Business this week that he's betting against the AI-powered data software company amid its colossal 144% stock surge in 2025. The stock has rallied most recently after reporting strong second-quarter earnings on August 4.
Left made it clear that despite Palantir's status as an AI and retail darling, he sees its valuation as extreme.
"If this was the greatest company that was ever created and we gave it the same multiples as, let's say Nvidia in 2023, the stock still can get cut by two thirds. And that would be like 35 times sales."
Palantir's price-to-sales ratio this month is hovering around 80x, while its forward price-to-earnings ratio was 290x on Thursday.
"I've stopped even looking at the ratio because it's become so absurd," Left said. "There's never been a company that has that type of multiple or that type of PE that's not corrected 50%."
The short-seller highlighted Palantir's significant following among retail traders, which he suggested is a negative for the stock. Left drew the ire of retail investors when his firm bet against the original meme stock, Gamestop.
His other high-profile short bets include Hertz, EV startup Nikola, and Valeant.
Once known for his high short-selling activity and social media presence, Left has toned it down recently. In July 2024, the US Securities and Exchange Commission charged him with market manipulation and securities fraud. In May, a federal judge rejected Left's bid to dismiss the case.
Left's firm continues to share its reports and perspectives on X. On August 13, it called out an X post by CNBC commentator Jim Cramer when he issued a bullish take on Palantir stock.
"Palantir at these levels isn't an "easy money" story; it's a high-multiple, hype-driven narrative," Citron wrote.
