Palantir Technologies Inc. experienced a significant drop in stock price, falling over 8% in after-hours trading following its latest earnings report, which failed to meet the high expectations set by investors. Despite reporting a 39% year-over-year revenue increase to $884 million and raising its full-year revenue forecast to $3.9 billion, the results were perceived as underwhelming compared to the company's previous performance. Analysts noted that while U.S. sales to commercial customers surged by 71%, international growth remained lackluster, raising concerns about the sustainability of the company's valuation.

The company's CEO, Alex Karp, described the growth as 'ferocious,' yet analysts expressed skepticism regarding the lack of clarity on new business drivers. Palantir's stock had previously soared due to optimism surrounding its AI capabilities, but the recent earnings report revealed that the stock was trading at over 200 times estimated earnings, making it the most expensive in the Nasdaq 100 Index. The mixed results and high valuation have led to increased scrutiny from investors, who are now closely monitoring key support levels in the stock's price chart.