Palantir Continues To Decline In Pre-Market As Valuation Concerns Mount—Citron Research Targets Overvaluation

Palantir Technologies Inc. PLTR declined 0.95% to $156.08 during pre-market on Wednesday, extending its 9.35% drop from Tuesday's regular trading, despite expanding its partnership with Fujitsu Ltd.The continued slide comes amid valuation concerns intensifying following critical reports from short-seller Citron Research.Check out how PLTR stock is trading here.Trending Investment OpportunitiesCitron Research Targets $40 Price TargetRenowned short-seller Andrew Left‘s Citron Research issued a bearish report arguing the stock of the Denver-based company is significantly overvalued and “detached from fundamentals and analysis.” Using OpenAI‘s recent $500 billion valuation as a benchmark, Citron calculated a $40 per share price target for Palantir.The report’s central thesis compares OpenAI’s projected $29.6 billion in 2026 revenue at a 17x price-to-sales multiple to Palantir’s consensus 2026 revenue forecast of $5.6 billion. Applying the same multiple implies a $40 stock price, though Citron stated “at $40, PLTR would still be expensive.”Insider Selling Adds PressureCitron’s report highlighted significant insider selling by CEO Alex Karp, who has sold nearly $2 billion in shares over the past two years. The firm contrasted OpenAI’s “unprecedented revenue growth” with Palantir’s “steady progress” and criticized the company’s reliance on “lumpy, less scalable revenue” from government contracts.Stock Performance, Partnership NewsDespite a 388.09% gain over the past year, PLTR has just gained 3.93% in the past month from its 52-week high of $189.46. According to Benzinga Pro data, the stockThe decline occurred despite Palantir expanding its partnership with Fujitsu Ltd., granting Fujitsu rights to offer Palantir’s AI Platform in Japan and integrate generative AI into Fujitsu’s Uvance framework.With a strong Momentum in the 98th percentile, Benzinga’s Edge Stock Rankings indicate that PLTR has a positive price trend across all time frames. Know how its momentum lines up with other well-known names. Palantir Stock Is Trending Tuesday: What’s Going On? Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.Photo Courtesy: PJ McDonnell on Shutterstock.com