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.

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.

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%.