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Palantir short sellers lose $3 billion as shares surge 30%
The rally followed Palantir raising its full-year revenue and income forecasts, flipping short sellers back into a year-to-date loss position.
Palantir Technologies’ steep stock move has dealt a sharp blow to investors betting against the company. According to data from S3 Partners LLC cited by LiveMint Markets, short sellers have accumulated about $3 billion in paper losses as the stock rose 30% Tuesday, wiping out their year-to-date paper gains.
LiveMint Markets reports the reversal comes after Palantir boosted its full-year revenue and income forecasts on Monday. The improved outlook drove a rally that ended short sellers’ prior positive run, after the shares’ sluggish performance had previously generated roughly $2.7 billion in year-to-date paper gains for the bearish cohort.
Even with the surge, Palantir shares are still down more than 8% for the year, which LiveMint Markets says leaves the stock on pace for its weakest annual performance since 2022. The article also notes that in November, investor Michael Burry disclosed bearish wagers on Palantir and Nvidia, and later said he had covered half of his short position in Palantir.
Valuation and demand questions remain in focus. LiveMint Markets says Jefferies analysts kept an underperform rating, pointing to Palantir trading at more than 83 times forward earnings, while other investors were more optimistic after CEO Alex Karp said commercial demand for its data analytics tools was “otherworldly,” and Deutsche Bank’s Brad Zelnick upgraded the shares to buy from hold with a $200 price target.