Overview

• Palantir fell more than 9% on Tuesday to rank among the S&P 500’s biggest decliners, then swung lower again before paring losses on Wednesday in a volatile sixth straight down session.
• Citron Research renewed its bearish call, arguing Palantir’s valuation is disconnected from fundamentals, comparing its multiples unfavorably to OpenAI and flagging heavy insider stock sales by CEO Alex Karp over the past two years.
• AI optimism cooled after an MIT study reported most companies see no measurable return from generative AI investments and OpenAI chief Sam Altman said investors may be overexcited about the technology.
• Tech benchmarks extended a two‑day pullback as investors took profits and rotated toward defensives, with Nvidia and AMD retreating while dip buyers later trimmed index losses.
• Palantir’s expanded deal letting Fujitsu offer its AI Platform in Japan failed to stem selling, and analysts noted lofty valuations and multiple compression, citing estimates that Palantir’s sales multiple slid from about 200x to 150x.