Calling Palantir Technologies "overhyped on AI," Jefferies analyst Brent Thill on Friday downgraded PLTR stock to underperform.
On the stock market today, Palantir stock fell 1.7% to near 16 in midday trades. With Friday's loss, PLTR stock was down 7% in 2024.
Also, Palantir stock advanced 167% in 2023.
Another hot software stock in 2023, C3.ai, has cooled off this year. AI stock dipped 1.3% to 27.51 on Friday. AI stock has dropped about 4% in 2024. C3.ai jumped about 158% last year.
PLTR stock bulls point to artificial intelligence software as a growth driver. Palantir has already mined the AI opportunity with government customers for intelligence gathering, counterterrorism and military purposes.
PLTR Stock: Generative AI Push
Those AI technologies rely on pattern recognition and statistical data to make predictions. New generative AI models process "prompts," such as internet search queries, that describe what a user wants to get. Generative AI technologies create text, images, video and computer programming code on their own.
Palantir announced its newest offering, the "Artificial Intelligence Platform," early in 2023.
Palantir has not disclosed pricing for AI products. Bearish analysts say Palantir needs to show progress developing new revenue streams from generative AI.
The software maker has expanded into health care, energy and manufacturing.
Some technical ratings have dipped. Palantir's Relative Strength Rating stands at 95 out of a best-possible 99.
Also, PLTR stock holds a Composite Rating of 93 out of a best-possible 99, according to IBD Stock Check-up.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
