Two Nasdaq-listed AI companies, Palantir Technologies and Space Exploration Technologies, have drawn sell ratings from Wall Street analysts even after sharp share-price gains since August. Jefferies' target implies 53% downside for Palantir, while Morningstar's target implies 58% downside for SpaceX.
Palantir and SpaceX shares have climbed 40% and 38% since August, and both rank among the ten most widely held stocks on Robinhood. Yet two Wall Street analysts now argue the rally has gone too far.
Jefferies sees 53% downside for Palantir
Brent Thill at Jefferies has a sell rating on Palantir, and his price target of $80 per share implies 53% downside from the current $172. Palantir builds the Foundry and Gotham data-integration platforms along with AIP, an AI orchestration layer that lets clients switch between models and enforce governance controls.
The company's fundamentals have been strong: second-quarter revenue increased 93% to $1.9 billion, its 12th straight quarter of acceleration, while non-GAAP earnings rose 156% to $0.41 per share. Still, Thill worries Palantir is underinvesting: Anthropic's annual revenue run rate jumped from $1 billion in January 2025 to $65 billion in July 2026, compared with Palantir's run rate rising from $3 billion to $7 billion over the same stretch.
Palantir also trades at 68 times sales, the richest valuation in the S&P 500, ahead of CrowdStrike's 44 times. According to Brent Thill: "The stock requires a heroic durability assumption to justify the current multiple."
Morningstar sees 58% downside for SpaceX
Nicolas Owens at Morningstar has a sell rating on SpaceX, with a target of $62 per share implying 58% downside from $150. SpaceX runs the Colossus I and II AI computing facilities and recently agreed to rent compute capacity to Google and Anthropic, alongside its reusable-rocket and Starlink businesses.
However, the growth carries a cost. Revenue rose 92% to $7.8 billion in the second quarter, up from 15% growth in the first quarter. SpaceX posted negative free cash flow of $25 billion in the first half of 2026, a pace that would burn through its $100 billion cash balance within two years. SpaceX trades at 94 times sales, an even steeper multiple than Palantir's.
Source: The Motley Fool
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