Other short-sellers have joined the fray in recent weeks. At the end of July, Palantir had a short interest of 54.7 million shares, representing around 2% of all its public stock. Short interest in the firm has increased around 2% since the prior month, according to data from MarketBeat.

Citron Research says Palantir stock at $40 per share would still be an expensive AI stock to own. Wall Street recommends caution on PLTR shares as well.