Palantir’s stock declined in after-hours trading Wednesday despite reporting better-than-expected quarterly earnings.
The data analytics company posted strong revenue and profit figures that topped Wall Street estimates for the fourth quarter.
Analysts pointed to the lagging performance of Palantir’s international commercial business as a key concern.
Revenue from that segment grew at a slower pace than domestic operations, raising questions about global demand.
The stock’s sky-high valuation also left little room for error, according to market observers.
Investors may have priced in perfection, making any minor shortfalls a trigger for selloffs.
Palantir continues to rely heavily on U.S. government contracts for a large portion of its revenue.
The company’s commercial expansion remains a work in progress, especially outside the United States.
Market sentiment suggests caution until international growth catches up with domestic momentum.
