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2 Popular AI Stocks to Sell Before They Fall 65% and 73%, According to Certain Wall Street Analysts
BPOPPopular(BPOP) The Motley Fool·2025-02-05 09:55

Group 1: Palantir Technologies - Palantir reported a 36% increase in sales to 828million,withadjustednetincomesurging75828 million, with adjusted net income surging 75% to 0.14 per diluted share in the fourth quarter [3][4] - The consensus estimate predicts a 17% increase in adjusted earnings over the next four quarters, leading to concerns about its current valuation of 248 times earnings [4] - Morningstar raised its target price for Palantir to 90,citingitsstrongfourthquarterresultsandstrategicpositioningintheAIvaluechain[4]TheInternationalDataCorporationestimatesthatAIplatformspendingwillgrowby4190, citing its strong fourth-quarter results and strategic positioning in the AI-value chain [4] - The International Data Corporation estimates that AI platform spending will grow by 41% annually through 2028, indicating strong growth prospects for Palantir [4] - Among 23 analysts, the median target price for Palantir is 39 per share, implying a 62% downside from the current price of 102[9]Group2:TeslaTeslasrevenueincreasedonly2102 [9] Group 2: Tesla - Tesla's revenue increased only 2% to 26 billion in the fourth quarter, missing estimates, while adjusted earnings rose 3% to 0.73perdilutedshare,largelyduetoa0.73 per diluted share, largely due to a 600 million contribution from Bitcoin [7] - The long-term outlook for Tesla remains positive, with significant investments in autonomous driving technology expected to yield future revenue [8] - Among 52 analysts, the median target price for Tesla is 278,indicatinga29278, indicating a 29% downside from the current share price of 390 [9] - CEO Elon Musk anticipates the introduction of robotaxi services in 2025, which could tap into a $10 trillion market opportunity [10] - Wall Street expects adjusted earnings for Tesla to increase by 19% in the next four quarters, despite concerns over its current valuation of 160 times earnings [11]