Famed short-seller Andrew Left's Citron Research publicly challenged CNBC's Jim Cramer over his bullish stance on Palantir Technologies Inc. (NASDAQ:PLTR).
Check out PLTR’s stock price over here.
Citron Research Slams Jim Cramer
Citron slammed Cramer for what it called a “negligent” promotion of the data analytics company, revealing that the firm holds a short position against the stock and labeling it a “high-multiple, hype-driven narrative.”
The public dispute ignited on Wednesday, after Cramer posted an enthusiastic message on X, stating, “Palantir making its run to $200 price target. Won’t have to wait too long!!!”
Citron Research responded directly the next day, questioning Cramer’s pivot from market commentator to “full-blown stock promoter.”
The firm argued that his post was irresponsible to his audience, stating, “Palantir at these levels isn’t an ‘easy money’ story; it’s a high-multiple, hype-driven narrative. If it falls back to $150, will we suddenly see him ‘ringing the register' and telling everyone it was obvious all along?”
Andrew Left Short Palantir Technologies
The X post reinforces a short position, Left announced on Wednesday on Fox Business. During the appearance, Left called Palantir “beyond overvalued,” noting that its forward price-to-earnings ratio exceeded 200x.
While stating he respects Palantir CEO Alex Karp, Left argued that investors cannot be told to ignore “big data” like valuation metrics. “It’s become so absurd,” Left said, arguing the stock would not be reasonably priced until it fell to the “$40, $50” range.
Price Action
Palantir stock has been a retail favorite, surging 145.21% year-to-date. The public disagreement between Left, known for his battle with retail traders over GameStop Corp. (NYSE:GME), and Cramer, a champion of individual investors, puts a spotlight on the stock’s polarizing valuation.
On Thursday, PLTR was up 0.33% in premarket. It was the top gainer within the S&P 500 index in 2024, and it was up 494.74% over the past year.
Benzinga's Edge Stock Rankings indicate that PLTR maintains a stronger price trend in the short, medium, and long terms. However, the stock scores poorly on value rankings. Additional performance details are available here.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were down in premarket on Thursday.The SPY was up 0.037% at $645.13, while the QQQ advanced 0.062% to $580.70, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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