Palantir Technologies shares have has become a focal point of market debate in recent sessions. A new short-seller report clashes with bullish catalysts from government and enterprise sectors.

Shares of Palantir Technologies (NASDAQ: PLTR) charged out of the gate on Tuesday, spiking as much as 9.8%. As of 10:50 a.m. ET, the stock was still up 8.3%.

While the operational momentum is clearly solid, investors should pay closer attention to the risks. History shows Palantir stock can fall hard as sentiment shifts.