Palantir Stock Drops 9.5% Amid Valuation Concerns Compared to OpenAI

Palantir Technologies (PLTR) shares fell sharply this week, declining 9.5% from last week's close. The drop contrasts with modest gains in the broader market, where the S&P 500 edged up 0.4% while the Nasdaq dipped 0.7%.

The selloff followed a critical report from Citron Research, which highlighted Palantir's staggering price-to-sales ratio of 115—nearly seven times higher than OpenAI's implied multiple of 17 after its latest funding round. Despite OpenAI's rapid growth and industry influence, Palantir's valuation remains disproportionately elevated.

Citron argues Palantir's stock WOULD need to fall to $40 per share to match OpenAI's sales multiple, a level that would still rank among the richest valuations in SaaS. The short seller's comparison exposes what it calls irrational pricing in Palantir's market premium.