Key TakeawaysPalantir Technologies shares dropped 6% Thursday after an analyst downgraded the stock, claiming artificial intelligence (AI) hype has left it with an "egregiously rich valuation."Analyst Brian White at Monness, Crespi, Hardt & Co. lowered the stock's rating to "sell" from "neutral," writing it's time to get "back to reality" after Palantir's "meteoric rise on the Gen AI rocket."Despite Thursday's decline, shares of Palantir have gained nearly 39% year to date.
Shares of Palantir Technologies (PLTR) slumped 6% Thursday after an analyst at Monness, Crespi, Hardt & Co. downgraded the stock, claiming that artificial intelligence (AI) hype has left it with an \”egregiously rich valuation.\”
Analyst Brian White lowered the stock\’s rating to \”sell\” from \”neutral\” with a 12-month price target of $20, saying it was overvalued because of excitement over the company\’s position in the AI market.
White said that while the company could be well-positioned to gain from the long-term AI trend and take advantage of geopolitical volatility, “revenue from government-related contracts has proven lumpy, execution spotty, valuation excessive, and we believe the darkest days of this economic downturn are ahead of us.”
White wrote that “after a meteoric rise on the Gen AI rocket, back to reality.”
Despite Thursday’s 6% decline to $23.01, shares of Palantir Technologies are up close to 39% for 2024 so far.
