No other company currently in the S&P 500 has hit a $490 billion valuation as quickly and with as little in sales.

The tech giant’s shares fell Tuesday on valuation concerns, but CEO Alex Karp insists investors are “fighting for the right side of what should work in this country.”

Meanwhile, Veteran analyst Stephen Guilfoyle credits Palantir’s growth to strong fundamentals, noting, “Sales are running wild as are margins. The commercial business is exploding. Cash flows are not just robust; they are enormous. The balance sheet is simply the greatest balance sheet I can remember seeing. The CEO is focused and aggressive.”

Shares of Palantir fell more than 8% after market open on Tuesday, leading a broader market decline after the software firm reported better-than-expected earnings, as some economists warned of “rally exhaustion” after a meteoric rise for several stocks this year.

Palantir Technologies Inc. broke records once again with its third-quarter earnings as the company’s artificial-intelligence offerings drove aggressive business growth and sent the stock climbing 5% in Monday’s extended session.

Palantir Technologies fell around 6% on Tuesday as a strong quarterly update from the company failed to extend its record-breaking rally.

However, Karp's exuberance about Palantir's Q3 results is warranted. The company blew past the consensus Wall Street revenue estimate of $1.09 billion. Its revenue growth accelerated from a 48% year over year in the second quarter of 2025.

Palantir Technologies Inc. shares dropped almost 8% on Tuesday, tumbling on concerns about the company’s lofty valuation and the sustainability of the AI rally, even after it topped analyst estimates for third-quarter sales and raised its annual revenue outlook.

Palantir Technologies forecast fourth-quarter revenue above analysts' estimates on Monday, as the rapid adoption of artificial intelligence boosts demand for its data analytics services from businesses and governments.