Palantir shares, which added around $150 billion in market value last year, were a standout performer in the data analytics and AI-tech space as investors bet on the profit potent

Palantir falls as Morgan Stanley assigns an Underweight rating, citing valuation concerns despite strong AI-driven growth and government contracts.

Shares of Palantir (PLTR) dropped more than 5% on Monday as the stock reacted to a new rating from Wall Street. Analysts from Morgan Stanley re-initiated coverage of Palantir with a “sell” recommendation.

Wedbush analysts predict that 10 AI stocks will shine in 2025: Nvidia, Microsoft, Palantir, Tesla ( TSLA) , Alphabet, Apple ( AAPL) , MongoDB, Pegasystems, ( PEGA) Snowflake and Salesforce.

Shares of data-analytics firm Palantir Technologies now have an Underweight rating from Morgan Stanley analyst Sanjit Singh, and a $60 target price.