The Pentagon Gets Serious About Drones
'Drones are the biggest battlefield innovation in a generation, accounting for most of this year's casualties in Ukraine,' Mr. Hegseth's memo this month says. 'Our adversaries produce millions of cheap drones each year.' Anyone awake to the Ukraine war knows drones dominate the front lines, and Russia is churning out copies with a heavy assist from Chinese parts.
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2 High-Flying Artificial Intelligence (AI) Stocks to Sell Before They Plummet 74% and 30%, According to Select Wall Street Analysts
Key Points Many companies in the center of the AI revolution have seen their stock prices soar in the last three years. These two companies have produced very strong operating results. But their stock prices have outpaced their financial growth, leading to sky-high valuations. 10 stocks we like better than Palantir Technologies › Artificial intelligence (AI) has become one of the biggest talking points for businesses over the last few years. The number of S&P 500 companies mentioning "AI" on their earnings call climbed from less than 75 in 2022 to 241 during the first quarter, according to FactSet Insight. A handful of companies have built big businesses around demand for artificial intelligence, or integrated AI to rapidly expand their addressable markets. Many of those companies have seen their stock prices soar over the last few years. But not every high-flying AI stock is worth buying after a massive run up in its price. Wall Street analysts have soured on two of the strongest performers over the last few years. Some analysts now see tremendous downsides ahead. Here are two AI stocks that could plummet over the next year, according to select Wall Street analysts. 1. Palantir Technologies (74% potential downside) Palantir Technologies (NASDAQ: PLTR) has been one of the best-performing stocks over the last few years. Since the start of 2023, the stock price has climbed an eye-popping 2,290%, and it now trades with a market cap exceeding $350 billion, as of this writing. But multiple analysts think the stock has climbed too far, too fast. Just seven analysts covering the stock rate it a buy or the equivalent. Seventeen say to hold it, and Palantir has four sell ratings. The lowest price target on the Street is RBC's Rishi Jaluria, who has a $40 price target on the stock, a 74% drop from its current price. The reason for the low price target isn't lack of financial results. Palantir has seen its revenue grow substantially over the last few years, as it expands its addressable market through its Artificial Intelligence Platform, or AIP. The new platform makes it easier for users to interact with the big data software and find useful business insights and help make decisions. That's expanded the use cases for Palantir's software, especially as businesses generate more and more data. As a result, Palantir's U.S. commercial revenue has climbed quickly, including a 71% increase in the first quarter. Moreover, Palantir has exhibited tremendous operating leverage. Instead of focusing on marketing and sales, CEO Alex Karp has put most of Palantir's manpower into building a better product. The idea is a better product will do the selling for itself. As a result, adjusted operating margin climbed to 44% in the first quarter, up from 36% in the first quarter last year. Indeed, Palantir is firing on all cylinders. But Jaluria and many others on Wall Street think the valuation of the stock has climbed too high. "We cannot rationalize why Palantir is the most expensive name in software. Absent a substantial beat-and-raise quarter elevating the near-term growth trajectory, valuation seems unsustainable," he said. Shares of Palantir currently trade for 228 times forward earnings and 78 times revenue expectations over the next 12 months. To put that in perspective, only a handful of S&P 500 stocks trade for more than 100 times earnings, and no others trade for more than 26 times sales expectations. Meanwhile, there are other companies growing sales even faster than Palantir, so it's a very hard multiple to justify. 2. CrowdStrike (26% potential downside) CrowdStrike (NASDAQ: CRWD) has seen its share price climb 352% since the start of 2023 on the strength of its Falcon security platform. Despite a massive outage that shut down numerous IT systems around the world last July, the company has bounced back quickly. The stock has more than doubled since its lows last summer, reaching a market cap of nearly $120 billion. But analysts are starting to look at CrowdStrike's stock with an increasingly critical eye. The stock received three downgrades this month from buy to hold, and one analyst initiated coverage with a hold as well. Over the last three months its buy ratings on Wall Street dropped from 41 to 31. And the lowest price target among them is $350, implying a 26% drop from the price as of this writing. Again, valuation appears to be the biggest concern for the stock. Operationally, CrowdStrike has managed to grow its customer base as more enterprises look to consolidate their cybersecurity needs and opt to use CrowdStrike's broad portfolio of services. Forty-eight percent of its customers now use at least six of its modules, as of the end of the first quarter. That's up from 40% two years ago. CrowdStrike is leveraging AI on its platform with agentic AI capabilities through its new Charlotte platform, which helps take action upon detecting a security threat to button up the vulnerability. That's on top of its machine learning capabilities, which help it detect those threats in the first place. And with a growing customer base, it has more data to ingest into its AI algorithms, giving it a significant advantage over smaller competitors. CrowdStrike has managed very strong growth over the last few years. Its annually recurring revenue climbed 20% in the first quarter, exceeding its guidance, and management expects that number to accelerate through the rest of the year as more businesses adopt its Falcon Flex platform. Still, the stock now trades at a price-to-sales ratio of 22 times revenue expectations over the next 12 months. And while that might not seem so expensive compared to Palantir, it makes it the third-highest priced stock in the S&P 500 by that valuation metric. And if you prefer to look at its earnings, it's one of the handful of stocks in the index trading above 100 times estimates, 135 times, to be exact. While it's possible CrowdStrike or Palantir continue to climb higher from here, it's probably worth taking money off the table at this point and finding better values in the market. Do the experts think Palantir Technologies is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Palantir Technologies make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,041% vs. just 183% for the S&P — that is beating the market by 858.71%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Palantir Technologies. The Motley Fool has a disclosure policy. 2 High-Flying Artificial Intelligence (AI) Stocks to Sell Before They Plummet 74% and 30%, According to Select Wall Street Analysts was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
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ICE releases deaf Mongolian immigrant after holding him for months without interpreter
A deaf Mongolian man who uses sign language to communicate has been released from immigration custody in Southern California after spending months in detention without access to an interpreter, a family member confirmed Saturday. CalMatters reported earlier this month on the man's detention. His family requested he be identified only by the name Avirmed because of their fear that he could be harmed by the Mongolian government if he is eventually returned to his home country. U.S. Southern District of California Judge Dana Sabraw on July 9 ordered officials at the Otay Mesa Detention Center to provide Avirmed with a Mongolian Sign Language interpreter. So far, Immigration and Customs Enforcement had not provided him access to anyone who spoke his language, which his attorney equated to holding him in solitary confinement. Immigration agents tried using Google Translate to ask Avirmed if he feared returning to Mongolia, according to court records. They badly misunderstood him, identifying his sponsor as a daughter named Virginia Washington, but he does not have a daughter, according to a legal complaint filed on his behalf. His sponsor is his sister, who lives in Virginia. She confirmed, 'He is home with me.' Avirmed's attorneys with the Disability Rights Legal Center and Disability Law United argued that holding immigration court proceedings without allowing him access to an interpreter violated Avirmed's legal civil rights. They drew on federal disability laws prohibiting discrimination against people with disabilities by any federal program, including the immigration court system. Sabraw agreed. 'He has a right, doesn't he? To be able to fully participate in any significant proceeding?' the federal judge asked the attorney for the federal government. The U.S. attorney's office for the Southern District of California would not comment on the man's release. Sabraw also ordered the federal government to redo two assessments that could have affected the 48-year-old man's request for asylum. The government did the assessments in a language Avirmed did not understand, the judge ruled. One examined his mental health, and the other evaluated whether he has a credible fear for his safety if he returns to his country. Avirmed was held in the Otay Mesa Detention Center since he entered the U.S. in February seeking asylum from persecution because of his disability. A 2020 assault in Mongolia left him with a traumatic brain injury that causes seizures and memory loss. He was attacked because of his disability, according to court records. His family declined to say how he reached the U.S. It remains unclear why Avirmed was released after being detained since February. He did not have any additional bond hearings, according to an immigration court docket. His attorneys could not immediately be reached for comment. ICE did not return a request for comment. Wendy Fry writes for CalMatters, where this article originally appeared. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
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DOGE plans to use AI to identify 50% of 200,000 federal regulations that can be eliminated by Trump
Federal government agencies are reportedly using an artificial intelligence tool from Elon Musk's DOGE initiative to identify regulations to cut, with a goal of cutting about half from a list of 200,000 federal rules. The tool, the 'DOGE AI Deregulation Tool,' is already in use at the Department of Housing and Urban Development as well as the Consumer Financial Protection Bureau, The Washington Post reports. The U.S. Doge Service described using the tool to analyze about 200,000 regulations to find ones that officials believe are neither necessary nor legally required, with a goal of cutting half by next January and saving the government trillions of dollars in spending by the anniversary of Trump's inauguration, according to a PowerPoint presentation obtained by The Post. The DOGE tool has already been used to review more than 1,000 'regulatory sections' at the housing department, as well as to drive '100% of deregulations' at the consumer protection bureau, according to the presentation. The White House and the housing agency described the efforts as preliminary. 'The DOGE experts creating these plans are the best and brightest in the business and are embarking on a never-before-attempted transformation of government systems and operations to enhance efficiency and effectiveness,' an administration spokesperson told the newspaper. The Independent requested comment from the Consumer Financial Protection Bureau. Ohio gubernatorial candidate Vivek Ramaswamy, one of the architects of the DOGE program, once mused about mass-deleting federal spending by culling large numbers of government workers. 'If your Social Security number ends in an odd number, you're out. If it ends in an even number, you're in,' he said in an interview with podcaster Lex Fridman in September. 'There's a 50 percent cut right there. Of those who remain, if your Social Security number starts in an even number, you're in, and if it starts with an odd number, you're out. Boom. That's a 75 percent reduction done.' Musk left the Trump administration in May, and in that time, DOGE failed to achieve the trillion-dollar cuts to federal spending the billionaire suggested might be possible. The effort — housed in a government tech agency renamed as the U.S. DOGE Service via executive order signed by the president,— was met with sharp criticism from Democratic officials, as well as scores of lawsuits from agency employees and advocacy groups arguing the initiative flouted key parts of transparency rules, federal rule-making guidelines, and budget laws. In its first six months, the Trump administration implemented actions reducing regulatory costs by $86 billion and 52.2 million hours in paperwork, according to the American Action Forum.
