Palantir stock has been on a tear in 2025, rising more than 40% even after Tuesday's big drop. Analysts have expressed concerns about the AI firm's valuation.

Palantir Technologies Inc.’s stock is falling more than 13% on Tuesday, despite the company’s solid first-quarter earnings and better-than-expected guidance.

Shares of Palantir Technologies slumped about 7% in premarket trading on Tuesday, after quarterly results and a raised forecast failed to meet the high expectations of Wall Street investors, who had driven the stock price up significantly ahead of earnings.