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Should You Forget Palantir Technologies and Buy This Artificial Intelligence (AI) Stock Right Now?

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  • The recent sell-off in Palantir might have some investors feeling nervous about owning the stock.

  • Alphabet is a diversified technology company with divisions spanning the cloud services, advertising, and AI markets.

  • 10 stocks we like better than Alphabet ›

Stock market volatility can be nerve-wracking. What’s worse, it can cause normally clear-thinking investors to make snap decisions they later regret.

So, given the recent volatility within the artificial intelligence (AI) sector, now is a good time to take a closer look at two prominent names within the space, and ask: Is now the time to sell Palantir Technologies (NASDAQ: PLTR) and buy Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)?

Image source: Getty Images.

First, let’s take a quick look at Palantir. After posting an excellent quarterly report on Aug. 4, shares have experienced a steep pullback, dropping by more than 16% (at the time of this writing).

As always with Palantir, there are concerns about the stock’s high valuation — it sports an eye-popping price-to-sales (P/S) ratio of more than 115x. Yet, the big reason for the decline seems to be a short-seller report. In this report, the short sellers gave a $40 price target for Palantir, roughly one-quarter of its price as of this writing.

Needless to say, it’s a bombshell report that claims Palantir’s business model is overvalued. However, there is one crucial fact investors should know: The source of the report is not neutral. Citron Research, the organization that released the report, has a short position in Palantir — meaning it profits as the price of Palantir stock declines.

That doesn’t mean their arguments are invalid, but it is worth noting.

Now, let’s turn to Alphabet. While Palantir stock has tumbled of late, Alphabet shares have steadily improved. As of this writing, shares are up 8% over the last month, whereas Palantir shares are up only 3%.

So, how has Alphabet dodged the torpedo that has sunk Palantir shares and brought down many other high-flying AI stocks? I chalk it up to Alphabet’s diversified business model. Granted, Alphabet has plenty of exposure to the AI ecosystem. Its cloud services division is highly levered to AI spending; it sells smart devices powered by AI; and it has its own AI-focused division, called “Google Deepmind.”

Yet, Alphabet also has the world’s largest digital advertising business (Google Search), which generates about $200 billion in annual revenue. In addition, its YouTube business generates a further $40 billion per year. In other words, Alphabet isn’t an all-or-nothing AI stock.



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Global movement to protect kids online fuels a wave of AI safety tech

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Spotify, Reddit and X have all implemented age assurance systems to prevent children from being exposed to inappropriate content.

STR | Nurphoto via Getty Images

The global online safety movement has paved the way for a number of artificial intelligence-powered products designed to keep kids away from potentially harmful things on the internet.

In the U.K., a new piece of legislation called the Online Safety Act imposes a duty of care on tech companies to protect children from age-inappropriate material, hate speech, bullying, fraud, and child sexual abuse material (CSAM). Companies can face fines as high as 10% of their global annual revenue for breaches.

Further afield, landmark regulations aimed at keeping kids safer online are swiftly making their way through the U.S. Congress. One bill, known as the Kids Online Safety Act, would make social media platforms liable for preventing their products from harming children — similar to the Online Safety Act in the U.K.

This push from regulators is increasingly causing something of a rethink at several major tech players. Pornhub and other online pornography giants are blocking all users from accessing their sites unless they go through an age verification system.

Porn sites haven’t been alone in taking action to verify users ages, though. Spotify, Reddit and X have all implemented age assurance systems to prevent children from being exposed to sexually explicit or inappropriate materials.

Such regulatory measures have been met with criticisms from the tech industry — not least due to concerns that they may infringe internet users’ privacy.

Digital ID tech flourishing

At the heart of all these age verification measures is one company: Yoti.

Yoti produces technology that captures selfies and uses artificial intelligence to verify someone’s age based on their facial features. The firm says its AI algorithm, which has been trained on millions of faces, can estimate the age of 13 to 24-year-olds within two years of accuracy.

The firm has previously partnered with the U.K.’s Post Office and is hoping to capitalize on the broader push for government-issued digital ID cards in the U.K. Yoti is not alone in the identity verification software space — other players include Entrust, Persona and iProov. However, the company has been the most prominent provider of age assurance services under the new U.K. regime.

“There is a race on for child safety technology and service providers to earn trust and confidence,” Pete Kenyon, a partner at law firm Cripps, told CNBC. “The new requirements have undoubtedly created a new marketplace and providers are scrambling to make their mark.”

Yet the rise of digital identification methods has also led to concerns over privacy infringements and possible data breaches.

“Substantial privacy issues arise with this technology being used,” said Kenyon. “Trust is key and will only be earned by the use of stringent and effective technical and governance procedures adopted in order to keep personal data safe.”

Rani Govender, policy manager for child safety online at British child protection charity NSPCC, said that the technology “already exists” to authenticate users without compromising their privacy.

“Tech companies must make deliberate, ethical choices by choosing solutions that protect children from harm without compromising the privacy of users,” she told CNBC. “The best technology doesn’t just tick boxes; it builds trust.”

Child-safe smartphones

The wave of new tech emerging to prevent children from being exposed to online harms isn’t just limited to software.

Earlier this month, Finnish phone maker HMD Global launched a new smartphone called the Fusion X1, which uses AI to stop kids from filming or sharing nude content or viewing sexually explicit images from the camera, screen and across all apps.

The phone uses technology developed by SafeToNet, a British cybersecurity firm focused on child safety.

Finnish phone maker HMD Global’s new smartphone uses AI to prevent children from being exposed nude or sexually explicit images.

HMD Global

“We believe more needs to be done in this space,” James Robinson, vice president of family vertical at HMD, told CNBC. He stressed that HMD came up with the concept for children’s devices prior to the Online Safety Act entering into force, but noted it was “great to see the government taking greater steps.”

The release of HMD’s child-friendly phone follows heightened momentum in the “smartphone-free” movement, which encourages parents to avoid letting their children own a smartphone.

Going forward, the NSPCC’s Govender says that child safety will become a significant priority for digital behemoths such as Google and Meta.

The tech giants have for years been accused of worsening mental health in children and teens due to the rise of online bullying and social media addiction. They in return argue they’ve taken steps to address these issues through increased parental controls and privacy features.

“For years, tech giants have stood by while harmful and illegal content spread across their platforms, leaving young people exposed and vulnerable,” she told CNBC. “That era of neglect must end.”



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Meta to add new AI safeguards after report raises teen safety concerns

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FILE PHOTO: Meta is adding new teenager safeguards to its AI products by training systems to avoid flirty conversations and discussions of self-harm or suicide with minors.
| Photo Credit: Reuters

Meta is adding new teenager safeguards to its artificial intelligence products by training systems to avoid flirty conversations and discussions of self-harm or suicide with minors, and by temporarily limiting their access to certain AI characters.

A Reuters exclusive report earlier in August revealed how Meta allowed provocative chatbot behavior, including letting bots engage in “conversations that are romantic or sensual.”

Meta spokesperson Andy Stone said in an email on Friday that the company is taking these temporary steps while developing longer-term measures to ensure teens have safe, age-appropriate AI experiences.

Stone said the safeguards are already being rolled out and will be adjusted over time as the company refines its systems.

Meta’s AI policies came under intense scrutiny and backlash after the Reuters report.

U.S. Senator Josh Hawley launched a probe into the Facebook parent’s AI policies earlier this month, demanding documents on rules that allowed its chatbots to interact inappropriately with minors.

Both Democrats and Republicans in Congress have expressed alarm over the rules outlined in an internal Meta document which was first reviewed by Reuters.

Meta had confirmed the document’s authenticity, but said that after receiving questions earlier this month from Reuters, the company removed portions that stated it was permissible for chatbots to flirt and engage in romantic role play with children.

“The examples and notes in question were and are erroneous and inconsistent with our policies, and have been removed,” Stone said earlier this month.



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The Dawn of Human–AI Synergy

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The Dawn of Human–AI Synergy

In every era of human civilization, science and technology have acted as the fuel of progress. From the invention of the wheel to the discovery of electricity, and from the first printing press to the age of the internet, technology has always pushed society forward. Yet, in the 21st century, we find ourselves at the edge of something even more profound—a future where human intelligence and artificial intelligence converge to reshape how we live, work, and even think.

This is not a story of distant centuries or futuristic fantasy. It is unfolding now, in real time, around us. Artificial Intelligence (AI), biotechnology, robotics, space exploration, and quantum computing are no longer dreams on paper; they are living realities with the potential to redefine what it means to be human.

AI: From Tools to Partners

Only a few decades ago, computers were seen as sophisticated calculators. Today, AI systems are generating music, diagnosing diseases, writing novels, and even driving cars. What makes this revolutionary is not just the speed of computation, but the ability of machines to *learn* and *adapt*.

Consider healthcare: AI-powered systems are now able to detect cancers in their earliest stages with accuracy that surpasses human doctors. In agriculture, AI drones are analyzing soil and weather patterns to guide farmers in planting crops more efficiently. In creative industries, algorithms are designing clothes, painting art, and even composing film scores.

The line between man and machine is slowly fading. Instead of replacing humans, the most successful innovations are those where AI works *with* us, not against us. This partnership opens the door to a future where tasks once thought impossible become routine.

Biotechnology: Editing Life Itself

Perhaps the most striking frontier of science today is biotechnology. With CRISPR gene-editing technology, scientists are rewriting the code of life. Genetic disorders that once doomed generations—like sickle-cell anemia or Huntington’s disease—may one day vanish from humanity’s story.

But beyond curing illness, biotechnology raises deeper ethical and philosophical questions. If we can design stronger, smarter, or more resilient humans, should we? Where is the line between medicine and enhancement?

At the same time, biotechnology is revolutionizing food production. Lab-grown meat and genetically engineered crops promise to feed billions sustainably, without exhausting our planet’s resources. The same tools that can design cures for rare diseases might also prevent global hunger.

Space Exploration: Humanity Beyond Earth

For centuries, the night sky has been a canvas for human imagination. Today, it is becoming our next great frontier. Private companies like SpaceX and Blue Origin are competing with national space agencies to make space travel more affordable and routine. Mars is no longer just a dream in science fiction novels; it is a target for colonization within the next few decades.

Space exploration is not merely about adventure. It is about survival. With climate change, overpopulation, and natural resource depletion threatening our planet, looking beyond Earth may one day be essential. Mining asteroids, building lunar bases, and developing interplanetary habitats could secure the future of our species.

And yet, the universe is not only a resource but a mystery. The search for extraterrestrial life, the study of black holes, and the pursuit of understanding dark matter remind us that science is not just about solving problems—it is about expanding our horizons.

Quantum Computing: The New Revolution

If AI is about intelligence and biotechnology about life, then quantum computing is about the very fabric of reality. Unlike traditional computers that process information in bits (0 or 1), quantum computers use *qubits* that can exist in multiple states simultaneously.

This gives quantum computers the potential to solve problems that would take classical supercomputers millions of years. From modeling new medicines to simulating climate systems and cracking complex codes, quantum technology could transform every industry.

Still in its infancy, quantum computing is like electricity in the 19th century—full of promise, waiting for its Edison or Tesla moment.

Challenges and Responsibilities

With every leap in technology comes responsibility. AI raises questions about privacy, job displacement, and bias. Biotechnology forces us to confront moral dilemmas about altering human life. Space exploration challenges us to unite globally for missions larger than any one nation. Quantum computing raises security risks that could upend global cybersecurity.

The danger is not the technology itself, but how humanity chooses to use it. Fire can warm a home or burn it down. Nuclear fission can power cities or destroy them. Likewise, the tools of the future will test our wisdom as much as our creativity.

Conclusion: A Shared Future

Science and technology are no longer separate subjects confined to laboratories. They are becoming the foundation of everyday life and the blueprint of tomorrow. What we build today—our machines, our medicines, our codes, and our ethics—will echo for generations.

The future will not be defined by whether humans or machines are smarter, but by how we choose to collaborate. The dawn of human–AI synergy is here. It is not about replacing humanity but about enhancing it, pushing us toward possibilities our ancestors could only dream of.

In this new age, the most important invention will not be a machine, a rocket, or a genome. It will be wisdom—the wisdom to use our tools not just to survive, but to thrive, to explore, and to create a future worthy of the human spirit.



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