Stock's Dive of Palantir in Current Week

Stock prices of Palantir have risen excessively and rapidly.

, and Administrator

2025 September 16 . 11:37 AM

2 min read

Stock decline of Palantir this week explained

Stock's Dive of Palantir in Current Week

In a recent turn of events, Palantir's stock has experienced a significant decline, with shares dropping by 9.5% as of 1:59 p.m. ET on Friday. This drop can be attributed to a combination of factors, including a short report from Citron Research and a comparison with OpenAI's valuation.

The note from Citron Research, released immediately following the news of OpenAI's latest funding round, highlighted the stark contrast between the two companies' valuations. Citron Research compared Palantir's valuation to OpenAI's implied valuation after its funding round, suggesting that Palantir is considered too expensive.

OpenAI, one of the most influential companies in recent decades, raised another $6 billion at a $500 billion valuation. Despite not having a publicly traded stock price, as it is a private company, OpenAI's implied price-to-sales (P/S) ratio, as pointed out by Citron Research, is 17. This is significantly lower than Palantir's current P/S ratio of 115.

If Palantir's stock traded with the same multiple (17 times sales) as OpenAI, it would be priced at $40 a share. This analysis suggests that Palantir's stock price is not rational, leading to avoidance recommendations from the research firm.

It's important to note that Palantir, despite being a strong company, has a slower growth rate compared to OpenAI. The rapid pace at which OpenAI is growing has earned it the title of one of the most expensive software-as-a-service (SaaS) stocks ever, with an implied P/S ratio that gives it the highest multiple of any scaled SaaS stock in the world.

Meanwhile, the S&P 500 gained 0.4% and the Nasdaq-100 lost 0.7% during the same period, indicating a broader market trend that may have also contributed to Palantir's stock decline.

As the comparison between Palantir and OpenAI's valuations continues to unfold, investors will be closely watching the developments to gauge the potential impact on Palantir's stock price.