Jim Cramer marks the top as Palantir stock slides 16%

Core Viewpoint - Jim Cramer's bullish call on Palantir has turned into a contrarian signal as the stock has experienced a significant decline following his optimistic remarks [1][2]. Group 1: Stock Performance - Following Cramer's post, Palantir's stock has fallen by 16%, marking its steepest five-day decline since April 2025 [2]. - On August 20, the stock plunged by 9.35%, closing at $158.34, and was trading pre-market at $156.80 [2]. Group 2: Valuation Concerns - Citron Research has assigned a fair value estimate of $40 per share for Palantir, which is nearly 75% below its current levels, citing concerns over its valuation despite revenue growth [3]. - The stock's recent performance has attracted bearish pressure from short sellers, with Citron Research doubling its short position in Palantir [3]. Group 3: Technical Analysis - The technical chart indicates a sharp reversal from overbought conditions, with selling volume increasing during the decline [4]. - The failure to maintain levels above the $180–$190 zone puts Palantir at risk of further retracement towards $140, where significant volume support exists [4].