Jim Cramer’s bullish call on Palantir (NASDAQ: PLTR) has quickly turned into a contrarian signal. 

On August 13, before the market opened, Cramer posted on X: 

“Palantir not even waiting until the bell to run to $200. Very strong.” 

At that point, PLTR was surging toward fresh highs. Just days later, the stock has erased much of those gains, underscoring Wall Street’s skepticism about its lofty valuation.

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.

Citron Research values PLTR shares at $40

The selloff has drawn fresh bearish pressure from short sellers. Citron Research announced it was doubling its short position in PLTR, assigning a fair value estimate of just $40 per share — nearly 75% below current levels. Citron Research highlights deep concerns over Palantir’s valuation, despite its continued revenue growth in AI-driven data analytics and government contracts.

Technically, the chart reflects a sharp reversal from overbought conditions, with selling volume accelerating into the decline. The failure to hold above the $180–$190 zone now puts Palantir at risk of further retracement toward $140, where major volume support sits.

While Cramer’s comments may not have caused the downturn, the timing has reinforced his reputation among traders as a reliable “top signal.”