Palantir Shares Plummets 1.77% as $10.88 Billion Volume Ranks Sixth Amid Valuation Scrutiny

Palantir (PLTR) fell 1.77% on August 18, with a trading volume of $10.88 billion, ranking sixth in market activity. The decline follows continued scrutiny over its valuation metrics and market positioning.

Short-seller Andrew Left has intensified criticism of Palantir’s stock, arguing it is grossly overvalued compared to AI peers like OpenAI. FactSet data shows Palantir trades at a forward P/E of 588x, dwarfing OpenAI’s estimated 17x multiple. Left contends that even applying OpenAI’s valuation to Palantir would imply a 77% drop in its share price, valuing the stock at $40 per share. He highlights structural challenges, including Palantir’s contract-based revenue model and competition from firms like Microsoft and Databricks.

Recent performance underscores volatility in the stock. After hitting a record high of $186.97 on August 12, shares retreated 6.9% by mid-August. Analysts note that while government contracts and AI platform growth justify some optimism, valuation concerns persist. A $10 billion U.S. Army award and bullish commentary from figures like Jim Cramer have provided temporary support, but skepticism remains about Palantir’s ability to sustain its premium multiple.

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