Finance

Palantir stock downgraded to sell on ‘unprecedented generative AI hype cycle’


Analysts downgrade data analytics software maker Palantir Technology (PLTR) on Thursday saw its valuation inflated as investors buzzed about generative artificial intelligence. Palantir shares fell in afternoon trading.




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Monness, Crespi, Hardt & Co. analyst Brian White downgraded Palantir stock to sell from neutral and set a price target of $20 on Palantir stock.

“With Palantir soaring in 2023 amid this unprecedented generative AI hype cycle and the stock’s upward trajectory continuing in 2024, we believe the company is very richly valued,” he said in a note. .”

Palantir stock price rises 43% in 2024

superior Today’s stock marketPLTR stock fell 5.7% to 23.11 in the afternoon. As of Wednesday’s close, Palantir Stock It will rise nearly 43% in 2024. But shares have retreated from a high of $27.50 hit on March 7.

Founded in 2003, Palantir has been exploring AI opportunities with government clients for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to stimulate the growth of the commercial market. The software maker has expanded into areas such as health care, energy and manufacturing.

new Generative Artificial Intelligence Model Process “prompts,” such as web search queries that describe what the user wants. Generative AI technology creates text, images, videos and computer code on its own.

Palantir Stock: Technical Rating

Palantir has not disclosed pricing for its AI products.

At a customer conference on March 7, Palantir showed off its artificial intelligence platform, which will be launched in early 2023. Palantir said at the conference that the artificial intelligence platform has been popular with business customers.

Palantir stock has a Relative Strength Rating of 97 (out of a high of 99).

“We believe Palantir is well-positioned to benefit from secular AI trends and take advantage of unstable geopolitics,” White said. “However, revenue from government-related contracts has proven inconsistent, execution inconsistent, and valuations excessive. high.”

In addition, according to the data, Palantir stock has an overall rating of 99 points (the highest score is 99 points) IBD inventory check.

IBD’s Composite Ratings combine five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or higher.

Palantir stock has an accumulation/distribution rating of B+. The rating represents three times the change in the stock’s price and volume over the past 13 weeks of trading. A+ represents heavy institutional buying; E represents heavy selling. Consider grade C as neutral.

Follow Reinhardt Krause on X (formerly Twitter), @reinhardtk_tech Learn about the latest developments in artificial intelligence, cybersecurity, and cloud computing.

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