Palantir (NYSE: PLTR) is facing renewed bearish pressure after Citron Research issued a warning, projecting that the stock could fall more than 70% from current levels.
At press time, Palantir was trading at $148, down 8.24% on the day and extending weekly losses to over 20%.
The latest downturn adds to growing concerns that the stock remains significantly overvalued amid intensifying competition in the artificial intelligence (AI) and big data space.
Citron Research in an X post on August 20 drew direct comparisons between Palantir and Databricks, a private data analytics giant recently valued at $100 billion.
Databricks, with over 15,000 enterprise clients, has positioned itself as a stronger growth business, benefiting from a true SaaS model and less reliance on government contracts.
Palantir’s crash to $40
According to Citron’s analysis, if Palantir were given the same $100 billion valuation as Databricks, its stock would be worth just $40, far below current levels.
The bearish projection also echoes earlier comparisons made to OpenAI, reinforcing Citron’s view that Palantir’s market price is detached from its fundamentals. The firm warned that repeated signals from established AI leaders point to a much lower fair value for the stock.
The selloff in Palantir comes amid broader weakness in AI-related equities. Market sentiment turned cautious after OpenAI CEO Sam Altman stated that the artificial intelligence sector was likely in a bubble, sparking fears that current valuations across the industry may not be sustainable.
It’s worth noting that Palantir stock peaked at 190 on August 12 before cooling as investors rotated out of hot AI names.
Despite the pullback, shares remain up 92% in 2025, fueled by expectations of increased U.S. government contracts under the Donald Trump administration and strong retail enthusiasm for AI, even as commercial revenue growth lags.
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