Palantir Technologies (PLTR) stock is retreating for a second straight day today, with the shares sinking 6% this afternoon. Today’s decline comes after Cathie Wood’s top ETFs sold nearly 200,000 shares of PLTR stock yesterday.
Also yesterday, Morgan Stanley analyst Sanjit Singh assumed coverage of PLTR stock with an Underweight rating, citing valuation.
Wood Sells a Portion of Her Palantir Stock
Wood’s ETFs sold a combined total of nearly 197,000 shares of PLTR stock, worth about $15 million.
In the wake of today’s subsequent decline by PLTR stock, the shares are now about 16% below their 52-week high of $84.80.
Yesterday’s Bearish Note From Morgan Stanley
Calling PLTR stock overvalued, Morgan Stanley’s Singh wrote that the firm’s growth is ” more than priced in at the” name’s current levels. Additionally, Singh contended that the shares may not climb if there are no clear indications that analysts’ estimates for the tech firm will rise.
The analyst put a $60 price target on the shares. That’s still well below the stock’s current price of around $71.
Meanwhile, despite PLTR’s two-day slide, the shares still have a huge non-GAAP forward price-to-earnings ratio of 200 times.
The Recent Price Action of PLTR Stock
The shares are down 6% in the last five days, while they are flat in the last month and up 72% in the preceding three months.
While we acknowledge the potential of PLTR, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.