Palantir Shares Fall 30% Amid Overvaluation Concerns

Palantir Technologies (PLTR) has faced significant stock volatility, recently dropping as much as 6.4% following a bearish note from Jefferies analyst Brent Thill, who reiterated a sell rating due to concerns over valuation despite the company's impressive AI technology and strong revenue growth. Thill labeled Palantir as the most overvalued stock in his coverage, priced at 150 times next year’s expected earnings, which raises red flags for investors amid insider selling activities. Although the company reported a revenue increase of 29% in 2024 and continues to expand its client base, analysts are cautious about its market valuation, with some estimating a fair value much lower than its current price. Recent developments, including new customer acquisitions and partnerships, have sparked optimism, yet many investors are bracing for potential further corrections. Overall, while Palantir's fundamentals and technology remain strong, the market sentiment indicates a struggle with its high valuation amidst ongoing sell-offs by insiders.