Palantir Stock Plunges Amid Short Sellers' Gains, Analysts Predict Potential Downside

Palantir's stock has dropped 10% this week, marking its longest decline streak in over a year. Short sellers have profited $1.6 billion as the market value decreased by over $73 billion. Analysts provide a mixed forecast, with price targets suggesting potential downside. The average one-year price target is $152.19, with estimates ranging from $200 to $45. The consensus recommendation is a "Hold," and the estimated GF Value is $42.25, suggesting a 73.38% downside from the current stock price.

Palantir Technologies (PLTR) has experienced a significant drop in its stock price this week, marking its longest decline streak in over a year. The stock has fallen by more than 10% during the week, wiping out $73 billion in market value. This decline has been a boon for short sellers, who have made $1.6 billion in gains [1].

The recent downturn is part of a broader tech pullback, as investors shift their focus from high-growth names like Palantir to cheaper sectors. Despite the recent dip, Palantir remains the top-performing stock in the S&P 500 (SPY) this year, up 106%. However, this massive rally has made Palantir one of the most expensive stocks on the market, prompting many short sellers to back off [1].

Analysts provide a mixed forecast for Palantir's stock. The average one-year price target is $152.19, with estimates ranging from $200 to $45. The consensus recommendation is a "Hold," and the estimated GF Value is $42.25, suggesting a 73.38% downside from the current stock price [2].

The recent earnings report showed that Palantir beat on earnings and revenue, with EPS of 16 cents versus 14 cents expected, and revenue of $1 billion versus $940 expected. Revenue rose 48% YoY and crossed the $1 billion mark for the first time [2].

Palantir's stock has shown resilience despite the recent selloff, with short interest growing by about 10 million shares since early June. Analysts believe that the downward trend might attract more bearish traders, but long-term investors remain optimistic about the company's growth prospects [1].

References:
[1] https://www.tipranks.com/news/short-sellers-earn-billions-on-palantirs-pltr-plunge
[2] https://247wallst.com/forecasts/2025/08/18/palantir-technologies-pltr-price-prediction-and-forecast-2025-2030/