Palantir Stock (PLTR) Plunges as Citron Declares It Can’t Compete with OpenAI’s Valuation

Palantir's stock just hit a brutal reality check—Citron Research's short-selling bombshell sent PLTR tumbling, arguing the data giant can't hold a candle to OpenAI's market dominance.

Wall Street's Reality Check

Citron didn't mince words: Palantir's proprietary data analytics stack looks downright archaic next to OpenAI's generative AI firepower. While PLTR struggles to monetize government contracts, OpenAI's valuation surge highlights where real tech disruption—and investor confidence—is flowing.

Finance's Cold Truth

Another legacy tech player getting exposed by the AI revolution. Maybe it's time for Palantir to stop selling spyware to three-letter agencies and start building something people actually want to use.

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Citron Says PLTR Is Overpriced Compared to OpenAI

Citron’s latest report used the $500 billion valuation of OpenAI, a leader in the AI space, as a point of comparison to show that Palantir’s stock price may be too high.

The short-selling firm noted that OpenAI’s valuation translates to a price-to-sales (P/S) ratio of nearly 17x. Meanwhile, Citron estimates Palantir’s 2026 revenue at $29.6 billion.

By applying OpenAI’s P/S ratio to PLTR’s projected revenue, the firm calculated an implied Palantir stock price of about $40 per share, much lower than its current $162.

Overall, Left’s firm concluded that Palantir does not belong in the same valuation league as OpenAI, given the latter’s “unprecedented scale” and rapid growth. This implies that even at a hypothetical $40 per share, Palantir WOULD still be considered an expensive stock.

TipRanks AI Analyst Impressed with PLTR

According to TipRanks AI Stock Analysis, Palantir stock has received a score of 75 out of 100 with an Outperform rating. Also, the AI analyst has set a price target of $196 on PLTR, which implies an upside of over 24%.

PLTR’s stock score reflects strong financial performance and positive earnings call sentiment. However, its high valuation and significant volatility are key risks for investors.

Is PLTR a Good Stock to Buy Now?

Turning to Wall Street, PLTR stock has a Hold rating, based on five Buys, 13 Holds, and two Sells assigned in the last three months. The average Palantir stock price target is $156.78, which implies a downside of 0.83% from current levels.