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

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

Palantir Technologies (PLTR) stock is retreating for a second straight day today, with the shares sinking 6% this afternoon.

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 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

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.