Aug 20, 02:11 PM

Palantir Sheds $69 Billion as Six-Day Slide Puts AI Darling in Correction

Palantir Technologies shares fell as much as 9% on Wednesday, extending a rout that has left the stock more than 20% below its 12 August record of $190 and formally in correction territory. The decline marked a sixth straight loss—the longest slide for the artificial-intelligence software maker since April 2024—and pushed the price briefly below $150. The sell-off has wiped about $69 billion from Palantir’s market capitalisation in five trading days and knocked the company out of the ranks of the 20 largest U.S. listed firms. The reversal follows a 150% year-to-date surge fuelled by robust second-quarter results, when revenue topped $1 billion for the first time. A critical report from short-seller Citron Research intensified pressure on the shares. Citron argued Palantir’s valuation is “detached from fundamentals,” set a $40 price target based on comparisons with OpenAI, and highlighted Chief Executive Officer Alex Karp’s share sales. Concerns over the company’s forward price-to-earnings multiple—about 193, far above megacap peers—have added to investor unease as the wider technology sector cools. Even after the pullback, Palantir remains among the market’s most prominent AI plays, buoyed by U.S. government and corporate demand for its software. Analysts say the steep slide underscores how quickly sentiment can shift for high-growth names when valuation questions and short-seller scrutiny emerge.