Morgan Stanley Boosts Palantir Stake By 50% In Q2, Then Slaps It with A 'Sell' Tag — And Social Media Is Obviously Outraged
Portfolio Pulse from Shanthi Rexaline
Morgan Stanley has increased its stake in Palantir Technologies by 56.5% in Q2, only to downgrade the stock to 'Underweight', equivalent to a sell recommendation. This has led to a drop of over 8% in Palantir's shares. Morgan Stanley's bearish stance is based on its view that AI platform revenue contribution will likely be delayed, anticipated top-line deceleration, and a difficult setup in the second half versus a lofty guidance.
September 01, 2023 | 9:00 am
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Palantir's shares dropped over 8% following Morgan Stanley's downgrade to 'Underweight'. The bank increased its stake in Palantir by 56.5% in Q2, leading to speculation of a strategy to acquire cheaper shares.
Morgan Stanley's downgrade of Palantir to 'Underweight' has led to a significant drop in the company's share price. This is despite the bank increasing its stake in the company by over 50% in Q2. The downgrade is based on Morgan Stanley's view of delayed AI platform revenue contribution, anticipated top-line deceleration, and a difficult setup in the second half versus a lofty guidance. This news is highly relevant and important for Palantir investors, and the impact on the stock price is likely to be negative in the short term.
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