Palantir experienced a six-day losing streak, dropping 17% from its Aug. 12 record and erasing more than $73 billion in market value. Short sellers booked over $1.6 billion in profits from the recent decline but still face about $4.5 billion in year-to-date paper losses. Short interest fell to roughly 2.5% of the float from nearly 5% a year ago as many shorts covered positions amid powerful momentum. The pullback forms part of a broader mega-cap technology decline driven by profit-taking and rotation into cheaper parts of the market.
Since hitting a record on Aug. 12, shares of the data analysis and software firm shed 17% through Wednesday's close in a six-day losing streak. In early trading Thursday in New York, shares swung between gains and losses. The drop has given short sellers more than $1.6 billion in profits, according to data from S3 Partners LLC. But that barely dents the $4.5 billion in paper losses traders have put up betting against Palantir this year, S3 data shows.
While the stock is the worst performer in the S&P 500 Index over the past six sessions, it remains the benchmark's biggest gainer for 2025 after soaring 106%. That climb has pushed Palantir shares to a nosebleed valuation. Yet, contrarian traders have largely bailed on their bets against the stock over the past year because the momentum appears to be unceasing.
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