“ It’s no longer a stock but a complete casino ”: Palantir will lose a third of its value by the end of the year after having jumped more than 300% since going public, according to the seller at discovered Citron Research

• Citron Research took a short position in Palantir shares on Friday, saying the stock’s 300% jump since its direct listing on September 30 is not sustainable.
• The short-selling firm said it expected Palantir to fall about 33%, to $ 20, by the end of the year.
• “As traders looking for short exposure, $ PLTR is no longer a stock but a full casino,” Citron said in a Tweeter.
• The news led Palantir to reverse the strong initial gains and slide up to 10%.
• Watch Palantir’s trade live here.

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Palantir will sink by around 33% as reality catches up to its huge rally, Citron Research said on Friday.

In one Tweeter, the short selling company has set a year-end price target of $ 20 for Palantir shares. Shares of the data mining company have risen more than 300% since a direct listing on September 30. Citron’s goal is still to double Palantir’s original price, but Citron said Palantir’s rally was not sustainable.

“What a race last month for all. But as traders looking for short exposure, $ PLTR is no longer a stock but a full-fledged casino,” said Citron.

Read more: Goldman Sachs Says To Buy These 26 Stocks Set To Deliver Strongest Earnings Growth In 2021 As S&P 500 Rises 20%

The news took Palantir shares from a strong morning rally to a 10% loss to intraday lows. The stock then cut losses on the shortened session to trade about 4% lower in the close.

The action enjoyed strong momentum until November after President-elect Joe Biden became the winner of the 2020 election. Biden’s victory sparked speculation that the new administration would cut military spending. The Department of Defense is already one of Palantir’s biggest customers, and budget cuts could drive more activity towards the company’s low-cost software from traditional vendors.

Palantir was trading at $ 30.69 at 11 a.m. ET. The company has two “buy” ratings and three “hold” ratings from analysts.

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