Palantir’s Six-Session Slump Erases $73 Billion in Value as Short Sellers Capitalize

Palantir Technologies Inc. has shed $73 billion in market value during a six-session losing streak, marking its worst performance since April 2024. The decline, which began after shares peaked on August 12, has dragged the stock down more than 17%—putting it on track for its ugliest week since tariff-related volatility earlier this year.

Despite being the S&P 500’s worst performer over this period, Palantir remains the index’s top gainer in 2025 with a 106% year-to-date rally. That surge had pushed valuations to unsustainable levels, forcing many short sellers to capitulate before this week’s reversal.

Data from S3 Partners LLC shows bears have recouped $1.6 billion during the slide, though they remain $4.5 billion underwater for the year. Short interest as a percentage of float has halved to 2.5% from nearly 5% a year ago, indicating most contrarians had already abandoned their positions during the relentless uptrend.