Palantir Increased Its Guidance, but Investors Are Selling. Is It Time to Buy the Stock?

Despite Palantir Technologies reporting strong first-quarter results with a 21% revenue growth and raising its full-year guidance, its stock fell by 8%. This drop is attributed to its high valuation, trading at nearly 18x forward sales, which is steep for its current growth rate. Investors are concerned about the modest increases in guidance and the mixed performance across different segments, particularly the slower growth in the European market and U.S. government contracts.