Palantir Stock Finally Breaks Losing Streak—Here’s Why Shares Are Surging Today

Palantir snaps its brutal decline with a sudden reversal—traders scramble as momentum shifts.

What changed?

No magic—just classic market mechanics. A short squeeze ignited the bounce after relentless selling exhausted the bears. Retail and algo traders piled in, triggering a classic dead-cat bounce—or maybe the start of a real recovery. Who knows?

Let’s be real: Wall Street loves a comeback story almost as much as it loves overreacting to a few green days after a bloodbath.

Stay sharp—this could be the turnaround… or just another fakeout before the next leg down.

Coming off a big losing streak

Palantir stock has seemingly been invincible. It's up over 1,600% in the past five years and over 110% this year. But the stock has struggled as of late. It was on a six-day losing streak until yesterday when it managed to eke out a marginal gain.

Image source: Getty Images.

Today, Palantir appears to be rallying along with the broader market. This morning, Federal Reserve Chair Jerome Powell hinted at the possibility of the Fed lowering interest rates at its upcoming September meeting, igniting a ferocious rally. As of this writing, thehad rocketed 850 points higher, while thewas up over 1.5%.

Palantir's artificial intelligence data capabilities have gained traction among many government departments and many commercial businesses, but some analysts simply think the stock has run too far too fast. Citron Research's Andrew Left, a famous short-seller, recently said on Fox Business that the stock is way overvalued.

"It's a wonderful company, but if this was the greatest company that was ever created and we gave it the same multiples, let's sayin 2023, the stock still can get cut by two thirds. And that WOULD be like 35 times sales," he said.

Investors have gotten ahead of themselves

I agree with Left. Palantir is clearly resonating with its customers and has tremendous potential, but every asset has a value. Even after the recent sell-off, Palantir trades at 245 times forward earnings. I would wait for much better entry points.