Palantir's Profit Nearly Quadrupled Over the Past Year. Its Stock Fell 40% From Its High. Both Numbers Get Tested on Aug. 3.

Palantir Technologies has delivered exceptional business results with net income nearly quadrupling to $2.28 billion and Q1 revenue growing 85% year-over-year, yet its stock has fallen 40% from its high of $207.52. The disconnect reflects investor concerns about valuation, with the stock trading at an 80x forward P/E multiple that prices in years of extraordinary growth. The company's Aug. 3 earnings report will test whether growth can sustain at current levels, particularly in the fast-growing U.S. commercial segment which grew 133% year-over-year.