Palantir stock is up over 90% this year – and short-sellers are accepting defeat
Palantir Technologies' fast success is making short-sellers think twice about their bet against the rising tech company's stock
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As Palantir stock climbed more than 90% this year, investors who had bet against the success of the company are giving up.
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Short sellers have lost about $7 billion since October of last year while Palantir’s stock gained traction by almost 300%. Short interest dropped from 5% in October to a current rate of about 2%.
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The tech company’s rampant success can be attributed to excitement over its artificial intelligence products and contracts with the Trump administration and military. Palantir stock is the best performing — and most expensive — stock on the S&P 500 so far in 2025. Shares increased in value by more than 1% on Thursday.
Palantir Technologies Inc. is a data analytics software company and has become a major player in the AI-boom.
“This is a U.S.-driven AI revolution that has taken full hold,” Alex Karp, co-founder and chief executive of Palantir, said in a statement in November of last year. “The world will be divided between AI haves and have-nots. At Palantir, we plan to power the winners.”
Some experts say heightened U.S. involvement in the ongoing conflict in the Middle East could aid in the company’s success due to its military contracts. However, some still consider the stock to be overvalued. Thomas George, president at Grizzle Investment Management, told Bloomberg, “It really feels like the stock is trading on vibes.”
Bloomberg estimates Palantir sales will rise 36% this year and 29% next year.