The article cites the lowest price targets from some Wall Street analysts, which suggest Palantir (PLTR) and Tesla (TSLA) could fall as much as 93%. Jefferies' Brent Thill expects Palantir to drop to $80, a 59% decline, even though the stock has risen more than 2,300% since October 2022; he doubts its growth can last and questions its premium valuation, with a P/S of about 82 after topping 100 at the start of 2026. GLJ Research's Gordon Johnson forecasts Tesla at $24.86, roughly 93% lower, based on a 15x forward P/E and a 9% discount rate. Johnson criticizes Tesla's full self-driving (FSD) software, which has not progressed beyond Level 2, and argues that a forward P/E of 172 is too high given expected low-double-digit annual sales growth in 2026 and 2027.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
TSLAPalantirvaluationartificial intelligence
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/26/2026 | 216.00 |
| Change that session | +2.39% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- JPMorgan starts Palantir at Overweight, calls it a disruptive AI leader
JPMorgan initiated coverage of Palantir Technologies with an Overweight rating and a December 2027 price target of $262 per share, adding the stock to its Analyst Focus List. Analyst Brian Essex wrote that enterprises are moving from deploying AI to seeking returns on it, and that Palantir is already delivering ROI, with revenue growth accelerating for the 12th straight quarter to 93% year over year. Non-GAAP operating margin reached 62% and free cash flow grew 126% last quarter. JPMorgan said the $262 target equals 55 times its 2028 EV/free cash flow estimate on $11.7 billion of free cash flow, and forecasts three-year free cash flow growth of 77% through 2028. The bank also placed Palantir on Positive Catalyst Watch ahead of its Nov. 2 earnings report.
- Forget Palantir: This AI Stock Has a Better Setup
Palantir reported second-quarter revenue of $1.94B, EPS of $0.41 against estimates of $0.28, and 92.8% revenue growth, and raised its full-year guidance again. The author calls the stock a crowded trade: shares sat at $197.34 premarket, with a trailing P/E of 281 and about 218 times free cash flow, while stock-based compensation rose to $265M in Q2 from $201.6M in Q1. The article notes that customer contracts include termination-for-convenience clauses and much of the revenue depends on U.S. government budgets. It also points to Alphabet, which trades at a trailing P/E of 14 (flattered by a $99.03 billion gain on equity securities), with total revenue up 24% to $119.8 billion, Google Cloud up 82%, and a backlog above $460 billion. Palantir's third-quarter report is expected on November 2 after the close, though the company has not confirmed the date.
- Will Palantir Technologies Stock Hit $300 Before the End of 2026?
Anthropic's IPO could value the company at over $2 trillion, above the valuation SpaceX reached when it went public earlier this year, which may draw investor attention to AI stocks. Palantir CEO Alex Karp has called frontier AI labs like Anthropic too risky, and the article suggests investors may find Palantir, valued below $500 billion, a more favorable AI stock. The stock trades near $200, close to its 52-week high; in its last quarter, revenue grew 93% to $1.9 billion and operating income was 47% of revenue, with third-quarter results expected next week. The author estimates that reaching $300 would require a market cap above $700 billion, about a 50% rise, which seems unlikely in a short period given the stock trades above 170 times earnings. In the author's view, at its current valuation the downside risk looks greater than the upside potential.
- I Said Palantir Stock Would Top $220 This Year. Here's What It Has to Prove on Nov. 2.
The author maintains his prediction that Palantir will reach $220 per share before the end of 2026, though shares traded at $190 to $198 on Friday. Palantir reports third-quarter earnings on Nov. 2, and he says it needs three things: quarterly revenue above $2.3 billion (management guided to about $2.16 billion, roughly 12% sequential growth versus about 19% in Q2), evidence that its AI sovereignty efforts are producing meaningful business, and an adjusted operating margin above Q2's 62%. Q2 revenue rose 93% year over year to $1.94 billion. He notes the stock is not cheap and says reaching $220 this year will require more than another good earnings report.
- Palantir Rises 4% as Software Stocks Rally; ServiceNow Gains 3%, Salesforce Holds Flat
Palantir shares rose 4% to $199.41 in afternoon trading, leading a broad software rally as buyers favored AI platform names. The iShares Expanded Tech-Software ETF gained 2% to $108.98 and the Invesco QQQ Trust rose 1.3% to $726.83, while ServiceNow climbed 3% to $153.33 and Salesforce slipped 0.2% to $242.07. On October 19, Knox Systems announced a partnership with Palantir to bring commercial software into the federal government's most tightly secured cloud environments, but neither company disclosed financial terms, and the article says it is unclear whether this news is behind the stock's gain. The article also points to Palantir's steep valuation as a source of doubt about the rally's staying power, and says the third-quarter 2026 report will test whether its government growth holds up.
- Is Palantir Stock a Buy Right Now ?
Palantir's stock has risen about 18-fold since its direct listing six years ago, when it began trading at $10 per share and now trades around $186. The article credits its Gotham and Foundry data platforms, its Ontology data model, and its AI Platform, which connects large language models, for the gains. The company has been profitable since 2023 and joined the S&P 500 and Nasdaq-100 in 2024. Analysts expect revenue and EPS to grow at 59% and 70% CAGRs over 2025–2028, and the stock trades at 87 times next year's earnings. Risks flagged include rising interest rates and Treasury yields that could compress its valuation, and a controversial reputation tied to immigration enforcement, mass surveillance and military software.
Related markets
Latest news
- Nvidia responds to report Jensen Huang was target of Chinese asset, says diversion allegations were 'investigated and debunked'
Nvidia has rejected a New York Times report that US intelligence agencies monitored Alice Huang, who is linked to Singapore-based cloud provider Megaspeed and is close to CEO Jensen Huang, over suspicions she could be a Chinese intelligence asset. According to the report, the agencies feared she could help Beijing obtain information from Nvidia and gain access to President Donald Trump through Huang. In a statement to CNBC, Nvidia said Megaspeed is one of its regional cloud customers, that Huang's contact with its officials is routine, and that customers do not get access to trade secrets or sensitive national security information. The company said allegations that Megaspeed helped evade US export controls were 'thoroughly investigated and debunked last year', and that the US government would let it know if it considered anyone a threat. Nvidia also noted that Washington cleared H200 chip shipments to China earlier this year, but Chinese regulators blocked imports, leading to about $4.5 billion in write-offs of China-tuned AI chips last year.
- Wall Street's top analysts are loving Microsoft's Q1 results
Microsoft reported first-quarter earnings of $4.89 per share on revenue of $92.28 billion, above Bloomberg consensus estimates of $4.73 and $90.63 billion, though the stock fell more than 1% after the bell. Azure revenue grew 48% year over year to $33.17 billion, which analysts highlighted as the strongest part of the report. TD Cowen raised its fiscal 2027 Azure growth estimate to 48% from 43% and its price target to $650 from $625, while Cantor lifted its target to $630 from $608 and Citizens raised its target to $625 from $550. Citizens also noted that consumer business revenue fell 3%, while BofA reaffirmed its rating and raised its price target to $630 from $600.
- Why Is PepsiCo Stock Falling, and Is It a Buying Opportunity?
PepsiCo (PEP) shares are down about 14% over the past six months. Although third-quarter results were not bad, management cut full-year adjusted EPS guidance as North American sales recover more slowly than expected. The company had cut prices on core brands like Lay's and Doritos by up to 15% to attract value-sensitive consumers, but plans modest price increases in 2027, while inflation, tariffs and higher transportation costs add pressure. The article notes strong international performance and a lower guidance bar for next quarter, and says the stock's valuation, around 15 times forward earnings and a price-to-sales ratio slightly under 2, suggests it is fairly priced. As a Dividend King with at least 50 consecutive years of dividend increases and a yield above 4%, it is described as a defensive consumer goods stock for income-focused or patient investors.
- Global AI Data Center Market Size, Share, Trends, and Forecast 2026-2036 | Revenue to Reach USD 2.75 Trillion as Hyperscale Investment, AI Inference, and Edge Deployments Accelerate
The report projects the global AI data center market to grow from USD 354.2 billion in 2026 to USD 2.75 trillion by 2036, a CAGR of 22.5% over 2026-2036. Growth is driven by generative AI and large language models, demand for GPU computing, investment from hyperscale cloud providers, and AI-as-a-Service, while challenges include power grid limits, high capital requirements and energy availability. Hardware is expected to hold the largest share in 2026 and services the highest CAGR, with hyperscale facilities leading in share and edge AI data centers growing fastest. North America leads in 2026 and Asia-Pacific is projected to grow fastest, while NVIDIA, Cisco, Intel, Dell, Equinix and Digital Realty are named as key competitors.
- AI Cloud Stocks Fall as Big Tech Capex Comes in Light: Fastly Sinks 6%, Oracle and Nebius Drop 3%
AI cloud stocks fell as Microsoft and Alphabet reported capital spending below Wall Street expectations: Microsoft reported $45.2 billion against a $50.7 billion consensus, and Alphabet reported $51.36 billion against $55.09 billion. Microsoft CFO Amy Hood said some expected third-party capacity deliveries were delayed, without naming a supplier, but still expects capital spending above $50 billion next quarter and about $170 billion for the calendar year. Because Microsoft buys computing capacity from providers such as Nebius and CoreWeave, the delays raise questions about how quickly their revenue will grow. Fastly (FSLY) fell 6% to $25.43, Oracle (ORCL) dropped 3% to $140.57 and Nebius (NBIS) dropped 3% to $177.56, while CoreWeave was roughly flat at $64. Hood said customer demand continues to exceed available supply.
- Alphabet shares plunge as search weakness overshadows Google Cloud growth
Alphabet (GOOG) shares plunged more than 11% on Thursday after third-quarter revenue and earnings per share missed expectations, with search revenue rising 12% against a 15% forecast and YouTube advertising reaching $11.2 billion versus $11.4 billion expected. Google Cloud revenue grew 103%, beating expectations of 93%, with operating margins of 36.2% and backlog rising to $561 billion from $510 billion. Bank of America kept its rating but cut its price target to $380 from $430, while UBS lowered its target to $332 from $380 and kept a Neutral rating, questioning whether external TPU sales will lift profitability as cloud margins were flat quarter over quarter. Investors remain concerned about spending, as Alphabet kept its 2026 capital expenditure outlook at $195 billion to $205 billion and recorded negative free cash flow for a second straight quarter, more than $9 billion in the red. Kathleen Brooks of XTB said the main concern for investors is weaker-than-expected advertising and search results.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.