Palantir Technologies Inc.’s stock has drawn a number of downgrades this year, with skeptics arguing that the enterprise-software name carries an expensive valuation.

Shares of Palantir ( PLTR 8.61%) were soaring today after the artificial intelligence (AI)-focused software stock posted better-than-expected results in its third-quarter earnings report last night, as revenue growth accelerated for the fifth quarter in a row. It posted strong margin expansion as well.

Key Takeaways Palantir's stock is surging after its latest results beat Street expectations.Analysts worry the company may be overvalued, with many maintaining sell or equivalent ratings despite a strong quarter.

Palantir Technologies shares powered firmly higher in early Tuesday trading Palantir (PLTR) , which was added to the S&P 500 last month, has established itself as key player in the defense industry, with a host of contracts with domestic and international agencies that focus on its data analytics and AI technologies.

Palantir Technologies (PLTR) has emerged as a stock market favorite in 2024, joining the ranks of other high-performing companies like Nvidia (NVDA). The company’s stock has delivered an astounding 141% gain year-to-date,

Palantir Technologies reported strong Q3 earnings, but high valuation and potential risks raise concerns. Click here for my PLTR stock update and a look ahead.