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Palantir's Valuation Questioned as OpenAI Raises $6B at $500B
24 Aug
Summary
- Palantir stock down 9.5% this week
- OpenAI's implied price-to-sales ratio is 17, highest for any scaled SaaS stock
- Palantir's price-to-sales ratio is 115, nearly 7 times that of OpenAI
On August 24, 2025, shares of Palantir (NASDAQ: PLTR) have fallen by 9.5% this week, as the broader market saw mixed performance. The drop in Palantir's stock price comes after a notable short seller, Citron Research, released a report comparing the company's valuation to that of OpenAI, a leading artificial intelligence research company.
Citron pointed out that OpenAI's latest funding round valued the company at $500 billion, giving it an implied price-to-sales (P/S) ratio of 17. This makes OpenAI one of the most expensive software-as-a-service (SaaS) stocks in the world. In contrast, Palantir's P/S ratio stands at a staggering 115, nearly 7 times higher than OpenAI's.
Despite OpenAI's rapid growth and influence in the tech industry, Palantir's stock price remains significantly higher. Citron argues that this valuation disparity is not rational, and that if Palantir were to trade at a similar multiple to OpenAI, its stock price would be around $40 per share, still considered one of the most expensive SaaS stocks on the market.
While Palantir is undoubtedly a strong company, the short seller's analysis suggests that its current stock price may be overvalued compared to its peers, particularly in the face of OpenAI's meteoric rise.
