"Palantir Faces Analyst Skepticism Amid AI Hype and Market Fluctuations"
Jeffries has downgraded Palantir Technologies (PLTR) to "Underperform" and cut its price target to $13, citing an unsustainable valuation propelled by AI excitement that is outpacing the reality of revenue generation. Senior Analyst Brent Thill suggests that while AI will be a significant driver for the tech industry, its impact on revenue will materialize slower than the market anticipates. Thill recommends investors to focus on companies with broader product offerings, like Microsoft and Adobe, and to consider returning to AI-centric stocks like Palantir once the hype has subsided and valuations become more reasonable.