Palantir stock remains super expensive despite a more-than-20% decline in recent sessions. But Citi analyst Tyler Radke believes PLTR shares have a very durable moat.

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.

Palantir stands out with its scalable AI impact, unique Ontology platform, and defensible moat. Read why I think PLTR stock is a buy-on-pullback opportunity.

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.

Short-seller Citron targets PLTR again, using a Databricks comparison to argue the stock is overvalued after its report sent shares falling.

Citron Research says Palantir stock at $40 per share would still be an expensive AI stock to own. Wall Street recommends caution on PLTR shares as well.

However, since hitting a record closing high of $186.97 on August 12, the stock on Tuesday was on track for a five-day losing streak and its worst day since May 6. As of 1500 ET, PLTR's class A shares were -9.48% at $157.53.

While the operational momentum is clearly solid, investors should pay closer attention to the risks. History shows Palantir stock can fall hard as sentiment shifts.

Since Cramer’s post, Palantir has fallen −16%, recording five consecutive red daily candles, marking its steepest five-day decline since April 2025. On Tuesday alone, PLTR stock plunged −9.35% (−$16.28), closing at $158.34, and was seen trading pre-market at $156.80 (−0.60%) on Wednesday, August 20.