This pure-play artificial intelligence stock is up 140% this year but trades at an unsustainable level, according to famed short-seller Andrew Left

Palantir has become a market favorite as investors rush into artificial intelligence plays, but famed short-seller Andrew Left warns the stock´s valuation may not be sustainable.

The article covers Palantir technologies, a data decision-making company that leverages artificial intelligence and has become a market favorite. The headline notes the stock is up 140% this year, while the body reports a 129% year-to-date gain and a roughly 1,720% increase over five years. Palantir´s platform is used by several departments in the U.S. government, including the U.S. Department of Defense for counter-terrorism, and the company positions its software as accessible to users without experience building large language models or advanced coding.

Financial details in the article are partially redacted. The report cites revenue growth of 48% year over year in the most recent quarter, but specific net income and diluted earnings per share figures are Not stated. Full-year guidance figures and market-cap metrics are also masked in places and are Not stated. The article does, however, report valuation multiples: Palantir trades at about 279 times forward earnings and near 99 times forward sales, figures that prompted concern among some analysts and investors.

Andrew Left of Citron Research is quoted praising Palantir´s business and its CEO while warning that the stock´s valuation is unsustainable. Left suggested that even if Palantir were comparable to high-growth peers such as Nvidia, the shares could be cut by two-thirds under a different multiple scenario. He also cited competition risk, naming Databricks as a rival with similar revenue and a broader corporate client base. The article notes Wall Street sentiment has shifted, with several analysts now neutral or negative and a TipRanks compilation implying an average price-target downside of roughly 16%. The author agrees with Left, calling the company impressive but overvalued, and advises investors to avoid the stock and wait for a better entry point given the current risk-reward balance.

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