Palantir Stock Drops as Jefferies Downgrades on AI Hype Concerns
- Jefferies downgraded Palantir stock, saying its AI capabilities are overhyped
- Stock dropped 4% in premarket trading on the downgrade
- Jefferies analyst sees valuation as unsustainably high, fueled by AI hype and retail investors
- Key issue is whether Palantir can accelerate US commercial growth
- Wall Street analysts cautious on the stock, while Seeking Alpha authors rate it a Buy