On Tuesday, shares of Palantir Technologies Inc. (PLTR.US) declined, falling over 6.7% to $193.2 at the time of writing. The company reported strong third-quarter revenue of $1.18 billion, up 63% year-over-year and surpassing analysts' expectations of $1.09 billion. For the fourth quarter, Palantir projected revenue of $1.33 billion, also above the consensus estimate of $1.19 billion.
However, market concerns over the company's valuation overshadowed the positive results. Deutsche Bank strategist Jim Reid noted, "Their performance is solid, but the market is disappointed by the lack of clarity on the company's outlook through 2026." He also highlighted worries about Palantir's high valuation.
As of Monday's close, Palantir's stock had surged 173% year-to-date, with a forward price-to-earnings ratio exceeding 200x.