What happened
Shares of Palantir Technologies (NYSE:PLTR) climbed nearly 7% on Thursday, as the data analytics company’s stock price recovered from the drubbing it took earlier in the week.
So what
Palantir plunged on Wednesday after Morgan Stanley analyst Keith Weiss cut his rating on its stock from equal weight to underweight and assigned a $17 price forecast on its shares.
Weiss argued that with Palantir’s stock up sharply from its public offering price of $7.25 in September, the risk-to-reward trade-off for investors was “decidedly negative.” With its shares trading at more than 30 times his revenue estimates for 2022, Weiss questioned whether Palantir’s growth prospects justified such a lofty valuation.