Shares of Palantir have fallen by more than 33% in less than two weeks' time. News of tech giant Microsoft cancelling some AI data center leases may have spooked AI investors. That underscores the danger with Palantir's stock because as quickly as it has rallied, it could give back its gains just as fast.

Jefferies equity researcher Brent Thill doubled down on a previously set ‘Underperform rating’ for Palantir stock, and set a $60 price target.

Palantir Technologies shares moved higher in early Wednesday trading, but have fallen sharply over the past month, as analysts look to the impact of insider selling from top executives and planned government spending cuts on the data analytics group.