Important points
- Palantir Technologies shares fell 6% on Thursday after analysts downgraded the stock, saying artificial intelligence (AI) hype had given the company an “abnormally high” valuation.
- Brian White, an analyst at Mones Crespi Heard & Co., said it was time to “get back to reality” after Palantir's “tremendous rise on AI genetic rockets,” rating the company's stock. was downgraded from “neutral” to “sell.”
- Despite Thursday's decline, Palantir stock has risen nearly 39% year-to-date.
Palantir Technologies (PLTR) shares were on the decline Thursday after analysts at Mones Crespi Hart & Co. claimed that artificial intelligence (AI) hype has made the company's stock price “abnormally high.” It fell 6% after the downgrade.
Analyst Brian White downgraded the stock from “neutral” to “sell” with a 12-month price target of $20, saying the stock is overvalued due to excitement over the company's position in the AI market. .
White said that while the company may be well-positioned to benefit from long-term AI trends and take advantage of geopolitical instability, “revenues from government contracts are volatile and implementation valuations have proven to be overstated, and we believe the darkest days are ahead.” The crisis of this economic recession lies ahead of us. ”
“After the meteoric rise of AI rockets, we are back to reality,” White wrote.
Despite falling 6% to $23.01 on Thursday, Palantir Technologies stock is up nearly 39% in 2024 so far.