Morgan Stanley Downgrades Palantir Amid AI Optimism Concerns

Palantir Technologies Inc. has been downgraded by Morgan Stanley due to skepticism surrounding the company's claims of being a major player in artificial intelligence (AI). While the stock has seen significant gains this year, it is currently down more than 20% from its recent peak and over 60% from its 2021 high. Analysts believe that Palantir's valuation reflects "AI euphoria" and that the company is still in the early stages of determining a monetization strategy for its solutions. The downgrade comes after Palantir gave a sales forecast that was seen as disappointing, leading to a high ratio of sell ratings among analysts.