Palantir Technologies Inc. experienced a significant stock plummet, entering correction territory, following a short seller report from Andrew Left's Citron Research. The report contributed to a six-day losing streak for the company's shares.
Citron Research characterized Palantir as 'detached from fundamentals and analysis,' asserting that shares should be priced at $40. This valuation critique compared Palantir's price-to-revenue multiple to OpenAI's recent $500 billion valuation.
The short-seller report directly challenged the sustainability of Palantir's high valuation, arguing that its price already reflects success beyond its fundamentals. Such reports can trigger investor concern and lead to increased selling pressure on the stock.
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