BREAKING: Short-seller Andrew Left is making headlines again, shifting his focus from a recent bearish call on Palantir to a bullish outlook on the AI company Databricks. In a striking turn of events, Left, founder of Citron Research, has identified Databricks as a potential rival to Palantir, sparking investor interest.
On August 14, 2023, Left appeared on Fox Business, declaring Palantir “overvalued” after a stunning 17% decline in its stock since his remarks. He criticized the company’s unsustainable price-to-earnings ratio, stating, “There’s never been a company that has that type of multiple or that type of PE that’s not corrected 50%.” His prediction has proved accurate as Palantir’s stock continues to struggle.
Now, Left is turning his attention to Databricks, a cloud-based data intelligence platform currently valued at $100 billion. He claims it is outpacing Palantir in growth and is poised to become a major player in the AI sector. “If you ask someone, aside from the hyper scalers, who the biggest competition for Palantir is going to be, it’s going to be Databricks,” Left stated.
This shift comes after Left, once a highly influential short-seller, faced challenges during the GameStop saga in 2021, which led him to stop publishing short-seller research. Despite ongoing legal issues, including a charge of market manipulation by the SEC with a trial scheduled for March 2026, Left’s recent pivot back to stock analysis has garnered attention.
In a recent post on X (formerly Twitter), Left highlighted Databricks’ success, noting its impressive valuation and contrasting it with Palantir’s high stock price. “Give Palantir the same $100 billion valuation that Databricks just earned. Where does that put the stock? $40,” he remarked, suggesting Palantir could see a significant drop in value.
Left’s enthusiasm for Databricks stems from its strong fundamentals and business model, which is not reliant on government contracts, unlike Palantir. “Most would agree Databricks is the stronger business today,” he emphasized.
However, potential investors should note that Databricks has no immediate plans to go public. Current online estimates rate its chances of announcing an IPO this year at just 10%, down from 30% earlier in August.
As the market watches this developing story, Left’s predictions could signal a significant shift in the AI landscape. Investors and analysts alike are eager to see how Databricks will position itself against established players like Palantir in the coming months.
Stay tuned for further updates as this story evolves.
