2 High-Flying Stocks Retail Investors Love That Can Plunge Up to 62%, According to Select Wall Street Analysts

Roughly 3 decades ago, the advent and proliferation of the net changed the concern scenery forever. But conscionable arsenic important, the net broke down accusation barriers that had existed betwixt Wall Street and Main Street for much than a century. In different words, this breakthrough exertion gave emergence to the retail capitalist revolution.

Retail investors are playing a larger relation successful full equities trading measurement implicit time. They've besides latched onto immoderate of Wall Street's highest-flying stocks, including artificial quality (AI) data-mining specializer Palantir Technologies (NASDAQ: PLTR) and satellite-based cellular broadband services supplier AST SpaceMobile (NASDAQ: ASTS).

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Although some of these beloved stocks person delivered outsize returns implicit the trailing 3 years -- Palantir and AST SpaceMobile person soared 1,630% and 1,280%, respectively, arsenic of Feb. 13, 2026 -- not everyone connected Wall Street shares the aforesaid imaginativeness arsenic retail investors. According to prime Wall Street analysts, this dynamic duo could plunge arsenic overmuch arsenic 62% successful 2026.

Palantir didn't adhd astir $300 cardinal successful marketplace headdress since the opening of 2023 by accident. It's the effect of consistently blowing past the statement income expectations of analysts and investors recognizing the institution offers a sustainable moat.

Its halfway operating platforms, Gotham and Foundry, person nary large-scale competitors. The U.S. authorities and its allies usage Gotham to program and oversee subject missions, arsenic good arsenic to cod and analyse information to support against attacks and behaviour transgression investigations. Meanwhile, Foundry is simply a subscription work designed to assistance businesses streamline their operations by amended knowing their data. Both of these software-as-a-service platforms are AI- and machine-learning-driven.

While companies with sustainable moats typically bid a valuation premium, there's lone truthful acold this premium tin beryllium stretched.

According to RBC Capital Markets expert Rishi Jaluria, Palantir banal tin caput to $50 per share. This would equate to 62% downside from wherever shares ended connected Feb. 13.

Jaluria, a longtime Palantir bear, continues to question wherefore investors are paying specified an outsize premium for the stock. History tells america that megacap companies astatine the forefront of next-big-thing trends person consistently topped retired astatine price-to-sales (P/S) ratios ranging from 30 to 45 implicit the past 3 decades. Palantir headed into its latest net study with a P/S ratio successful the debased triple digits. No net bushed oregon gross usher summation would person been capable to warrant specified a premium.