A growing number of investors are shorting the stock of data analytics firm Palantir (PLTR), which is a bet that the share price will decline.
According to short-selling research firm S3 Partners, 98 million shares of Palantir are sold short currently. That’s up 81% from the start of September, and the largest increase in a short position among stocks traded on the benchmark S&P 500 index.
The rise in Palantir’s short position comes after the stock has risen 147% this year, dwarfing the 24% gain in the technology-laden Nasdaq Composite Index (QQQ). PLTR stock is now trading at 122 times future earnings estimates, which is sky-high and well above the average price-earnings (P/E) ratio of 41 times earnings among stocks traded on the Nasdaq.
Short Interest Double That of the S&P 500
Stocks that have enjoyed big rallies and have a high valuation often attract short sellers who believe the good times cannot last and…
