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Wall Street analysts are warning investors to reconsider their positions in Palantir Technologies and Tesla, predicting potential declines of up to 73% and 65% respectively. Brent Thill from Jefferies has set a target price of $28 for Palantir, implying a 73% downside from its current price of $102. Despite the company reporting strong fourth-quarter results with a 36% sales increase, analysts find its current valuation, at 248 times earnings, unsustainable. Morningstar has raised its target price, indicating some optimism within the investing community, but caution is advised due to the stock's high valuation.
Similarly, Tesla's forecast shows a median target price of $278, reflecting a 29% drop from its recent price of $390, with Ryan Brinkman at JPMorgan highlighting a potential decline of 65% to a target of $135. Tesla's fourth-quarter performance was disappointing with minimal revenue growth, despite ongoing aspirations for future autonomous driving revenues. Analysts stress the importance of volatility management for investors considering these stocks.