Jeffries Brent Thill: Downward pressure on Palantir in part due to tech pullback

Palantir shares sank into bear market territory Wednesday after six-straight days of heavy selling.

The slide marks the longest such streak for the artificial intelligence software company since April 2024, and brings shares down 20% from the recent record. Shares closed in correction territory on Tuesday after accumulating a 15% loss from the highs.

Palantir's slide followed a broader market selloff and came on the heels of a short-seller report from Andrew Left's Citron Research. He called the company "detached from fundamentals and analysis" and said shares should be priced at $40 if compared to the same price-to-revenue multiple in OpenAI's recent $500 billion valuation.

"Karp and his team should be proud. But for investors, that's where discipline kicks in," Left wrote. "Comparison is the enemy of happiness, and when measured against true AI leaders, Palantir's price already reflects success beyond its fundamentals."