### Palantir's Stock Plummets: CEO Alex Karp's Confrontation with Short Sellers Palantir Technologies has recently faced significant stock volatility, with shares dropping by **11%** this week, marking the company's worst performance since April 2025. CEO Alex Karp has publicly criticized short sellers, particularly targeting hedge fund manager Michael Burry, who has taken a short position against Palantir. Despite the company's strong quarterly earnings report, which showed a **63%** revenue increase to **$1.2 billion**, concerns over valuation and market manipulation have overshadowed these results. Karp's remarks highlight a growing tension between the company and investors betting against its stock, framing their actions as detrimental to the market's integrity [https://www.cnbc.com/2025/11/07/palantir-ceo-alex-karp-ai-short-sellers.html?amp_gsa=1&_js_v=a9&usqp=mq331AQGsAEggAID][https://investorshangout.com/palantir-ceo-calls-out-market-manipulation-amid-stock-drop-451775-]. ### Breakdown of the Situation: Key Segments 1. **Stock Performance**: Palantir's shares have experienced a notable decline, dropping **11%** this week, attributed to short selling and valuation concerns. 2. **CEO's Response**: Alex Karp has publicly condemned short sellers, labeling their actions as market manipulation and expressing frustration over their impact on the company's stock price. 3. **Earnings Report**: Despite the stock drop, Palantir reported strong Q3 results, with a **63%** increase in revenue, indicating robust business performance. 4. **Market Dynamics**: The situation reflects broader market trends where short selling can significantly influence stock prices, especially for companies in emerging sectors like AI. ### Supporting Evidence and Data - **Stock Decline**: Palantir's stock fell **11%** this week, the largest drop since April 2025 [https://www.cnbc.com/2025/11/07/palantir-ceo-alex-karp-ai-short-sellers.html?amp_gsa=1&_js_v=a9&usqp=mq331AQGsAEggAID]. - **Quarterly Earnings**: The company reported a **63%** revenue growth, reaching **$1.2 billion** in Q3 2025 [https://indexbox.io/blog/palantir-ceo-karp-criticizes-short-sellers-after-strong-q3-results]. - **Karp's Criticism**: Karp described the actions of short sellers as "egregious" and "batshit crazy," particularly targeting Michael Burry's short position against AI companies [https://www.cnbc.com/2025/11/04/karp-big-short-burry-palantir-nvidia.html?amp_kit=1&usqp=mq331AQIUAKwASCAAgM=]. ### Conclusion: Analyzing the Implications 1. **Stock Volatility**: Palantir's stock is under pressure due to short selling, leading to a **11%** decline this week. 2. **CEO's Stance**: Alex Karp's strong condemnation of short sellers highlights a significant conflict between the company and market speculators. 3. **Positive Business Performance**: Despite the stock drop, Palantir's impressive earnings report suggests underlying business strength. 4. **Market Manipulation Concerns**: Karp's remarks raise questions about the ethics of short selling and its impact on emerging tech companies. In summary, while Palantir continues to demonstrate strong financial performance, the ongoing battle with short sellers poses challenges that could affect investor confidence and market perception moving forward [https://investorshangout.com/palantir-ceo-calls-out-market-manipulation-amid-stock-drop-451775-].