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2 High-Flying Artificial Intelligence (AI) Stocks to Sell Before They Plummet 74% and 30%, According to Select Wall Street Analysts
The Motley Foolยท2025-07-26 20:15

Core Viewpoint - The article discusses the recent surge in AI-related stocks and highlights that not all of them are good investment opportunities after significant price increases, with analysts expressing concerns about potential declines in certain stocks [1][2]. Group 1: Palantir Technologies - Palantir Technologies has experienced a remarkable stock price increase of 2,290% since the beginning of 2023, leading to a market capitalization exceeding $350 billion [5]. - Analysts are skeptical about the sustainability of Palantir's high valuation, with the lowest price target set at $40, indicating a potential downside of 74% from its current price [6]. - Despite strong revenue growth, including a 71% increase in U.S. commercial revenue in the first quarter, analysts believe the stock's valuation is unjustifiable, trading at 228 times forward earnings and 78 times revenue expectations [7][10]. Group 2: CrowdStrike - CrowdStrike's stock has risen 352% since the start of 2023, reaching a market cap of nearly $120 billion, driven by its Falcon security platform [11]. - Analysts have downgraded CrowdStrike's stock ratings, with the lowest price target suggesting a 26% decline from its current price [12]. - The stock trades at a price-to-sales ratio of 22 times revenue expectations and 135 times earnings estimates, making it one of the highest-priced stocks in the S&P 500 by these metrics [16].