Despite Palantir Technologies trading at a forward P/S ratio above 80, a former professional short-seller and hedge fund analyst managing $600 million said he would never open a short position in the stock.

The reason — strong fundamentals and no immediate downside catalyst. According to the analyst, “the market can remain irrational longer than a short-seller can remain solvent,” and high valuation alone is not a sufficient reason to short.

Palantir has been growing its revenue for seven consecutive quarters. In Q1 2025, the company posted a 39% year-over-year increase. Rather than building new AI models, Palantir focuses on making AI actionable through its Artificial Intelligence Platform (AIP), which integrates data from diverse sources and helps clients solve real-world business problems.

AIP is already used in hospitals to monitor sepsis, in construction, logistics, manufacturing, as well as by NATO and U.S. military forces. The broad range of applications and technological reliability position Palantir as a potential leader in the next tech cycle.

According to the analyst, the stock may be too expensive to buy right now — but it’s far too promising to short, even with its premium valuation.