Palantir shares tumbled Tuesday afternoon, extending recent losses as a high-profile short seller fueled worries the stock could be overvalued after a strong run earlier this year.

Citron Research says Palantir stock at $40 per share would still be an expensive AI stock to own. Wall Street recommends caution on PLTR shares as well.

Shares in Palantir fell as much as 9% in late trading on Tuesday amid a broad AI pullback and a critical short-seller report.

As Palantir drops 15%, tech bull Dan Ives calls the selloff a healthy buying opportunity and sees massive long-term upside for the AI leader.

Palantir stock continues to sink as investors pull back more broadly from AI stocks due to valuation concerns. Here’s why PLTR shares are not worth buying on the dip.

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.

Short-seller Citron targets PLTR again, using a Databricks comparison to argue the stock is overvalued after its report sent shares falling.

Palantir Technologies ($PLTR) has been a popular name in the AI and data analytics space, but its stock is facing fresh pressure as investors head

Palantir is facing renewed bearish pressure after Citron Research issued a warning, projecting that the stock could fall more than 70% .