Bears criticized Palantir’s valuation for months as shares climbed higher. Is Wall Street paying more attention to the multiple now?

After a couple of huge insider sales of the company, Palantir stock ( PLTR, Financial) declined 8% on Tuesday. It fell to as low as $70.31 in the session and, by the market close, took that to $71.85.

Shares of Palantir (PLTR) dropped more than 5% on Monday as the stock reacted to a new rating from Wall Street. Analysts from Morgan Stanley re-initiated coverage of Palantir with a “sell” recommendation.

Palantir Technologies (PLTR) stock is retreating for a second straight day today, with the shares sinking 6% this afternoon. Today’s decline comes after Cathie Wood’s top ETFs sold nearly 200,000 shares of PLTR stock yesterday.

Palantir falls as Morgan Stanley assigns an Underweight rating, citing valuation concerns despite strong AI-driven growth and government contracts.

Shares of data-analytics firm Palantir Technologies now have an Underweight rating from Morgan Stanley analyst Sanjit Singh, and a $60 target price.