Citron Research founder and famed short seller Andrew Left announced a new short pick on Wednesday during an appearance on Fox Business.
The short seller who previously targeted retail investors by shorting GameStop Corporation (NYSE:GME) is now targeting the same group of investors by shorting Palantir Technologies (NASDAQ:PLTR), a popular retail darling.
What Happened: Left famously shorted GameStop stock in 2021 before the stock went parabolic with a surge of retail traders pouring into the video game retailer to take on hedge funds and short sellers betting against the company.
Left lost money on his GameStop trade and once said that Citron would stop issuing short reports on companies.
A change of heart has led Citron to issue both long and short calls on stocks.
On Wednesday, Left announced he was short Palantir, calling the company "beyond overvalued."
"It's become a retail darling," Left said during an interview with Fox Business.
Left said it's become obvious the stock is overvalued based on metrics and highlighted that he's not a hater of the company by shorting the stock.
"I like Alex Karp, I like Alex Karp's politics, I like Alex Karp as a person," Left said of the Palantir CEO.
Left said that even if Palantir was the greatest company ever created and you assigned the highest multiple to it, the stock is still higher than that price.
"It's become so absurd."
Fox Business host Liz Claman highlighted the forward price-to-earnings ratio of Palantir being over 200x during the interview.
The Citron Research founder said you can't be a big data company like Palantir and then tell investors to ignore big data, like looking at valuation metrics and multiples.
Left said the stock could go higher and he doesn't expect to be right all the time or call the top on the stock perfectly.
"The stock does not really get cheap until it's $40, $50."
Left fought back at the notion from Claman that Palantir could be best in class in data analysis, highlighting other companies that are also doing data analysis.
Why It's Important: Ahead of the short call on Palantir, Left discussed the overall stock market with Claman and also had his picks from his April interview on the show highlighted.
Amazon.com Inc (NASDAQ:AMZN) stock is up 34% and First Solar (NASDAQ:FSLR) stock is up 52% since Left's call out of those two names on the show back in April.
Left said he is long Amazon and long Apple Inc (NASDAQ:AAPL), which, alongside being short Palantir, are part of his "balanced portfolio."
In April, when investors were panicking about news of President Donald Trump's tariffs, Left said he saw a buying opportunity and had faith in the administration’s actions.
"I thought that Trump knew what he was doing," Left said.
He highlighted one of his favorite stock picks during the interview, calling out Rocket Companies (NYSE:RKT), which he previously described as the potential "Amazon of housing."
The Citron Research founder said he has been long Rocket since May and sees catalysts ahead, including pent-up demand for home buying, lower mortgage rates, and the company integrating AI into its operations to improve efficiency.
Left also said watch out for Databricks when the company goes public based on recent valuations. The short seller said the company is a direct competitor to Palantir, but has more customers.
PLTR Price Action: Palantir stock was down 1.4% to $184.37 on Wednesday. Shares hit a new all-time high of $189.46 during the intraday trading session. Palantir stock is up 145% year-to-date in 2025, and shares are up 506% over the last year.
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