Bears criticized Palantir’s valuation for months as shares climbed higher. Is Wall Street paying more attention to the multiple now?

FEATURE Palantir Technologies stock fell for a third straight day after Cathie Wood’s ARK Investment Management unloaded more shares of the software company. Palantir had an undeniably good 2024, skyrocketing 340% as enthusiasm for the company’s artificial intelligence platform and highly publicized government contracts drove the stock price higher.

Shares of Palantir (PLTR) dropped more than 5% on Monday as the stock reacted to a new rating from Wall Street. Analysts from Morgan Stanley re-initiated coverage of Palantir with a “sell” recommendation.

Palantir falls as Morgan Stanley assigns an Underweight rating, citing valuation concerns despite strong AI-driven growth and government contracts.

Newly minted highs of nearly $85 per share will be far in the rearview mirror as Palantir strikes its way towards a price target of $100 and then $125. All thanks to Wall Steet’s shift to being buyers of the stock. As always, the simplest trade here is a buy and hold strategy.

Palantir shares, which added around $150 billion in market value last year, were a standout performer in the data analytics and AI-tech space as investors bet on the profit potent