Palantir Technologies Inc. raised its annual revenue outlook to $4.4 billion and outpaced analyst estimates for third-quarter sales, though the shares declined in after-hours trading on concerns about the company’s lofty valuation after a record run-up.
Palantir shares fell about 3% in extended trading after earlier gaining as much as 7% following the report. Investors have sent the shares up more than 150% so far this year, closing Monday at a record $207.18. The company had a price-to-sales ratio of 85 as of Friday — the highest in the S&P 500 Index.