Palantir's stock falls on downgrade to Sell

Shares of tech company Palantir (PLTR) fell sharply after receiving a downgrade from to Sell from Neutral at Monness Crespi Hardt. It's partly a valuation call from analysts, who argue they "believe the market will increasingly shun software stocks with excessive valuations." The firm has a $20 price target on Palantir shares.

In the video above, Yahoo Finance's Jared Blikre and Julie Hyman discuss the call and take a look at Palantir's chart.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Stephanie Mikulich.

Video transcript

And let's get to some of our calls of the day.

Moness Crespi Hart downgrading palent here to AC the note, saying the company's rally gives rise to a gluttonous valuation.

And I got some more choice quotes here from analyst Brian White saying the downgrade comes after a quote.

Dismal earnings season for enterprise software also failed to live up to the 18 month Gen. A I propaganda cycle propaganda cycle.

So I think you, uh, some biases might be revealed right there.

Um, yeah, but well, but he also one of the things he says is that we have not seen, um, the gen A. I Nirvana pro, uh, in his words, propagated by the enterprise software industry, he said.

That's proven to be a revenue illusion this year that the the boost that we have seen for some of these enterprise software companies has not necessarily been from Gen.

I in terms of the actual revenue growth.

A couple of other things to note about palant here here.

The stock is up about 39% this year, But for Wall Street, unusual negative sentiment from sell side analysts there are five buys, eight holds seven cells including this new one from white.

And you know, we tend to talk about how bullish the street tends to be.

In general, it's rare for them to have cell ratings, so to have seven cells on a stock, it's pretty rare.

It's also a very highly charged stock.

It's a Peter Thiel enterprise, so politics get involved.

Um, I'm not entirely surprised, but you're right.

It's very good to point out that Wall Street typically is much more bullish on the software enterprise plays.

Let's go to the Wi Fi Interactive real quick where I'll chart it.

Uh, $30 per share is a critical level here and what I'm seeing.

So this is the IP O.

This is that initial spike, and we might be tracing out a head and shoulders bottom here.

If that's the case, then you take a measured move from the bottom of that to the top and probably puts us around 45 $50 if we can break above.

But it looks to me like the pattern is incomplete and it's going to take a little bit more backing and filling to complete that