HomeFinancial MarketsShares of Palantir Technologies Plunge After a Downgrade From Monness, Crespi, and...

Shares of Palantir Technologies Plunge After a Downgrade From Monness, Crespi, and Hardt

Data-analytics software company Palantir Technologies saw its stock enjoy an admirable run since 2023 amid the ongoing artificial intelligence frenzy. However, it appears that the momentum for Palantir’s shares is slowly waning.

In a recent note to clients, analysts from stock broker Monness, Crespi, and Hardt downgraded the Palantir stock rating from “Neutral” to “Sell. “As a result, the company’s shares have dropped 6.73% on Friday.

According to Monness, Crespi, and Hardt’s analysts, Palantir stock was already “rich” at the start of the year, and its growth in 2024 has now reached a “gluttonous extreme.”

“After surging 167% in 2023, Palantir’s stock was already rich upon entering 2024 and, with a 49% rally YTD [ year to date], we believe valuation has now reached a gluttonous extreme,” analyst Brian White wrote in the note viewed by Barron’s

White adds that the struggles of enterprise software companies in recent quarters will prompt investors to move away from software stocks that have “inflated valuations.” He also set the price target for Palantir at $20 per share, believing that the company faces a period of uncertainty.

After the recent plunge, Palantir’s stock is currently sitting at $23.84 per share. It remains 43.79% up year-to-date.

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