Every so often, a stock captures the imagination of investors like few others can. The company's technology promises to be so innovative, so disruptive, that investors are willing to pay incredible multiples,

Palantir Technologies Inc. (NASDAQ:PLTR) shares moved higher on Wednesday as the software sector rebounded from weakness earlier this week.

The note emphasized that Palantir shares declined 10% following a 4% selloff in the Nasdaq, and if the broader market continues to decline, Palantir could see further downside risk.