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 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.

A judge in April denied Left’s request to dismiss the SEC suit. Andrew Left, founder of Citron Research, center, exits federal court in Los Angeles, California, US, on Monday, July 7, 2025.