Palantir (PLTR) has been hit with a downgrade to "Underperform" by Jeffries, which also slashed its price target to $13. The firm argues that Palantir's valuation has become unsustainable on the back of an artificial intelligence boom that has not yet materialized. Jeffries Senior Analyst Brent Thill joins Yahoo Finance to discuss the reason for the move. While acknowledging Palantir has promising technology, Thill believes "the hype is ahead of the reality." He notes that while AI adoption will grow, "AI is a driver, but it's gonna be a slower revenue materialization" than the market expects for Palantir currently. Thill highlights software firms like Microsoft (MSFT) and Adobe (ADBE) which boast "the best product line-ups" spanning multiple sectors, not just an AI niche. For Palantir and similarly hyped names, he advises investors to wait until the AI hype wears off "and then come back to these names at a lower level." The downgrade is a reality check that Palantir's value may have become inflated beyond reasonability in anticipation of an AI boom that has yet to emerge. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith...

A host of Wall Street analysts have put Microsoft stock on their lists of top stock picks for 2024. In 2024, Microsoft will "deliver on the hype" and start monetizing its AI investments, Jefferies analyst Brent Thill said in a client note Friday. In afternoon trades on the stock market today, Microsoft stock rose 0.3% to 369.04...