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Palantir (PLTR) Stock Under Fire as Citron Warns Valuation Still Too High

Palantir Technologies Inc. (NASDAQ:PLTR) is one the AI Stocks Analysts Are Watching CloselyOn August 18, Palantir stock received a cautious mention from Citron regarding the company’s stock valuation, marking the second time the firm has raised concerns.

The stock slipped amid the mention and recent remarks from OpenAI CEO Sam Altman who has warned that the AI market is in a bubble. Altman’s remarks have put a question mark over the sustainability of AI-related stock valuations.

Previously, the firm led by Andrew Left implied that Palantir may begin to look cheap at $40 per share. However, that view has since been updated, with the analyst now arguing that the stock would remain expensive even at that level.

An investor in front of a graph of the U.S. dividend-paying market, looking contemplative.

The analysis by the short seller puts OpenAI and Palantir into comparison, highlighting that if Palantir were to trade at the same 17x price-to-revenue multiple as OpenAI (based on Bloomberg consensus estimates of $5.6 billion in 2026 revenue), its implied stock price would be about $40 per share.

Citron contends that even this price would mark Palantir as one of the most expensive SaaS stocks.

“OpenAI at $500B Puts Palantir at $40 — And That’s Generous “

Another concern that was highlighted is insider selling. The firm noted how CEO Alex Karp has sold nearly $2 billion in Palantir shares over the past two years, which makes him “one of tech’s most aggressive insider sellers.”

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.

While we acknowledge the risk and potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks Analysts Are Watching Closely and 10 Trending AI Stocks in Focus This Week.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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