Palantir Stock Slides 5% Premarket as Morgan Stanley Downgrades Palantir to Sell

Tiger Newspress2023-08-31

Palantir stock slides 5% in premarket trading on Thursday.

Morgan Stanley downgraded Palantir Technologies to Underweight and raised the price target on the stock to $9 from $8

The analysts said that near-term optimism in AI product cycle and valuation premium creates an unfavorable risk-reward in the stock, as visibility on AIP monetization still remains low, the government segment seems unlikely to provide an offset and estimates already imply a H2 re-acceleration.

The analysts noted that their view is based on — expected delays in AIP revenue contribution given management commentary which Palantir has yet to figure out how to monetize it; risk that the government business may not be able to offset a top-line deceleration, after recently beginning to deteriorate;

In addition, the analysts view is also predicated on — a difficult setup into the H2 as revenue outlook already implies an acceleration in estimated organic revenue growth (ex-strategic investments and Japan JV contribution), which sets a higher bar for the positive estimate revision needed to justify valuation.

Palantir has a Strong Buy rating at Seeking Alpha's Quant Rating system, which consistently beats the market. Meanwhile, Seeking Alpha authors' average rating is Hold, and the average Wall Street analysts' rating is also Hold.

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Comments

  • lalala12334
    2023-08-31
    lalala12334
    The stupid ones are the ones who read a stupid article and decide to sell based on it. 
  • 2020TS
    2023-08-31
    2020TS
    This are one of the many crooks, to profit by writing negative news. 
  • DaraC
    2023-08-31
    DaraC
    Very good. It will be a good time to buy more soon
  • Goyanz
    2023-08-31
    Goyanz
    More market manipulation 
  • Wenmoon
    2023-08-31
    Wenmoon
    🤪🤡🤪🤡
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