Palantir shares have fallen for six consecutive sessions, marking their longest losing streak since April 2024 and pushing the artificial intelligence software company deeper into correction territory.

On Wednesday, the stock slid another 1.1%, leaving it down nearly 20% from recent record highs and knocking Palantir out of the top 20 most valuable U.S. companies — a spot it had only just claimed last month.

The sell-off comes amid broader weakness in tech stocks and follows a scathing short-seller report from Andrew Left’s Citron Research, which accused Palantir of being “detached from fundamentals and analysis.”

Citron argued that if Palantir were valued at the same price-to-revenue multiple as OpenAI — which recently secured a $500 billion valuation — its shares should trade closer to $40.
“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.”

Palantir’s surge earlier this month was driven by a milestone $1 billion revenue quarter that blew past Wall Street expectations, alongside a string of lucrative government contracts, including with the U.S. Department of Defense. The company has been one of the biggest beneficiaries of the AI boom, with its software increasingly pitched as a backbone for military, intelligence, and enterprise AI applications.

That momentum helped Palantir briefly break into the top 10 U.S. tech firms by market cap and join the S&P 500 last year. But investors are now reckoning with its steep valuation — Palantir still trades at a forward price-to-earnings ratio of 193, far higher than its megacap peers.

Analysts say the recent drop doesn’t erase the company’s strong fundamentals but highlights the risk of chasing AI hype. While Palantir remains a leading AI-adjacent stock with proven government ties, the market may be recalibrating expectations after months of runaway gains.

For now, investors are left asking whether this is a healthy correction — or the start of a more sustained pullback.