Why Did Palantir's Stock Plunge 3.63%? Citron Research Criticism

On September 2, 2025, Palantir's stock experienced a significant drop of 3.63% in pre-market trading, reflecting a notable decline in investor sentiment.

Palantir's recent stock performance has been influenced by several key factors. Short-selling firm Citron Research has expressed skepticism about Palantir's valuation, comparing it unfavorably to OpenAI. This criticism has led to a substantial decline in Palantir's stock price, with shares tumbling over 17% from their recent highs.

Despite the recent slump, Palantir has historically shown strong revenue growth and impressive stock price performance, which has attracted many investors. The company's data analytics software, widely used by the U.S. government and military, has been a significant driver of its success.

Additionally, Palantir's CEO, Alex Karp, recently sold a substantial amount of his shares, worth approximately $63 million, as the stock surged by 111% this year. This move has raised questions about the company's future prospects and the confidence of its leadership in the stock's continued growth.