Catenaa, Wednesday, August 20, 2025- Palantir stock has fallen about 17% in the last 5 trading days, following a price report by short seller Citron Research and as investors move away from tech stocks.
Palantir stock rose more than 150% from its April low through its second quarter earnings report, which saw the company’s revenue top $1 billion in a single quarter for the first time.
Data from market data provider Barchart showed Wednesday’s slide marked Palantir’s longest losing streak since March.
Palantir was also under pressure after a bearish report by short seller Citron Research published Monday predicted a price target of $40. The firm’s founder, Andrew Left, called the target “generous.”
Citron said it derived its price target by comparing Palantir to OpenAI’s recent $500 billion valuation as the ChatGPT giant looks to sell several billion dollars of stock.
Palantir is not alone in seeing some investors move away from the stock in recent days.
The Technology Select Sector SPDR Fund, which tracks technology stocks, has been down by 0.5% since July 20.
AI superstar Nvidia is up by just 1.2% in the same period, while its chip rival Advanced Micro Devices’ stock is up by 4.8%.
The pressure on AI names comes at a moment when the broader market rally is starting to show signs of rotation beyond Big Tech.
After months of concentration in a handful of growth giants, sectors like Health Care and Homebuilders, along with small- and midcap stocks, have taken on a larger role in driving this summer’s move to record highs. The sectors are up more than 4% and more than 3%, respectively, over the last five days.
