Veteran analyst revamps Palantir stock after slump originally appeared on TheStreet. Over the past five trading days, Palantir stock has fallen 15%, sparking hesitation among investors looking for a bottom. Earlier this month, the artificial intelligence software provider posted a strong earnings report that pushed its shares to record highs.

Palantir shares tumbled Tuesday afternoon, extending recent losses as a high-profile short seller fueled worries the stock could be overvalued after a strong run earlier this year.

Palantir's price-to-sales ratio of 114 is way above OpenAI's 17. Palantir's success in defense work could block access to growth as enterprise AI payoff remains elusive