Palantir Shares Fall After Record Run-Up Despite Sales Surge

Palantir shares fell about 3% in extended trading after earlier gaining as much as 7% following the report. The company had a price-to-sales ratio of 85 as of Friday — the highest in the S&P 500 Index. “All these numbers are completely disengaged from fundamentals,” D.A. Davidson’s Gil Luria said in an interview with Bloomberg Television.

Palantir Reports Booming U.S. Commercial Sales

Palantir’s sales to U.S. businesses hit $397 million in the third quarter, exceeding Wall Street’s expectations and growing 121% compared to the previous year,  the company reported Monday.

The U.S. commercial growth was a highlight of continued breakneck growth for Palantir, which has been the stock market’s best-performing software company and neared a $500 billion market capitalization