Login to Continue Learning
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Citron Research’s Andrew Left is intensifying his bearish stance on Palantir with renewed vigor, as evidenced by his tripled-down $40 per share price target for the stock. This approach, while commendable in its discipline and focus, might appear overly aggressive.
During a recent interview on Fox Business, Left boldly declared that he is now short on Palantir and has added to his bearish bet following the company’s latest quarterly earnings release. He even labeled his negative thesis as “obvious.”
Related Post
In a more recent development, Left doubled down on his conviction by formally setting a $40 price target for Palantir, describing it as generous. His rationale was based on OpenAI’s projected price-to-sales multiple of 17x, which he applied to Palantir’s 2026 consensus revenue estimate of $5.6 billion, yielding a theoretical valuation of $95.2 billion and the now-infamous $40 per share target.
Left then compared Palantir with Databricks, noting their similar annual revenues and gross margins. While Databricks has a higher net revenue retention rate, Citron Research used Databricks’ $100 billion valuation as a benchmark to compute the same $40 price target for Palantir.
As of today, Palantir’s share price has declined 16% over the past five trading days and another 2% in pre-market trading. Citron Research’s timing in going short on Palantir appears impeccable, given that recent MIT research revealed a staggering 95% of generative AI projects are failing to produce any return on investment (ROI).
