Why Palantir Stock Is Sliding Over 3% Premarket Today

Palantir Technologies, Inc. PLTR shares were pulling back in premarket trading on Thursday following a negative analyst action.

Morgan Stanley analyst Keith Weiss downgraded Palantir from Equal-Weight to Underweight, citing unfavorable risk-reward, StreetInsider reported. The analyst also said the stock could see a 45% downside from current levels.

Palantir shares, which rose to a high of $20.24 in early August ahead of the release of the company’s second-quarter results, have pulled back since then.

Analysts are divided over the company’s AI opportunity. Wedbush analyst Daniel Ives called the company as the “Messi of AI” and has a bullish recommendation for the stock.

“With a raise in FY23 guidance, a significant increase in customer count, strong performance, and the AI arms race well underway, we continue to believe Palantir is the gold standard in AI,” the analyst said in a note reviewing the company’s quarterly results.

In premarket trading on Thursday, Palantir stock fell 3.49% to $15.76, according to data from Benzinga Pro.

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