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.

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

AI software firm Palantir Technologies ($PLTR) has seen its stock drop for six straight sessions, wiping out $73 billion in market value.

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

As Palantir drops 15%, tech bull Dan Ives calls the selloff a healthy buying opportunity and sees massive long-term upside for the AI leader.

We recently published Jim Cramer Said Quantum Computing Could Quench AI’s Thirst For Water As He Discussed These 14 Stocks . Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer recently discussed.

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.

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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.

Palantir is facing renewed bearish pressure after Citron Research issued a warning, projecting that the stock could fall more than 70% .