Why Palantir Technologies (PLTR) Shares Crashed Yesterday

We recently published a list of 10 Firms Mirror Wall Street Decline. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other firms mirroring Wall Street decline.

Wall Street’s main indices suffered a bloodbath on Tuesday, as investors shifted to other higher-yielding assets following better Treasury yields.

The Nasdaq Composite led the drop, losing 1.89 percent, followed by the S&P 500 declining 1.11 percent. Meanwhile, the Dow Jones dipped by 0.42 percent.

The overall market downturn dragged down the prices of these 10 companies. In this article, let’s explore the reasons behind their decline.

To come up with Tuesday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A software engineer manipulating a vast network of code on virtual monitors.

Palantir Technologies Inc. (NASDAQ:PLTR)

Shares in Palantir Technologies (NASDAQ:PLTR) dropped by 7.81 percent or $5.93 on Tuesday to close at $69.99 apiece after Cathie Wood’s top ETFs sold nearly 200,000 shares of PLTR stock yesterday.

Wood’s ETFs sold a combined total of nearly 197,000 shares of Palantir stock, worth about $15 million.

On the same day, Palantir (NASDAQ:PLTR) earned an “underweight” rating from Morgan Stanley analyst Sanjit Singh, citing valuation. He said that the firm’s growth “is more than priced in.”

Additionally, Singh said that the shares may not climb without clear indications that analysts’ estimates for the technology firm will rise. He projected a $60 price target on the shares which is well below its current valuation.

Overall, PLTR ranks 7th on our list of firms mirroring Wall Street decline. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that 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.