Palantir Technologies (NYSE: PLTR) stock has been flying high in 2024 thanks to the company's growing artificial intelligence (AI) credentials, but investors were in for a shock after the data analytics and software platform provider released its first-quarter results on May 6.

Shares of Palantir fell 15% the following day. That may seem a tad surprising at first since Palantir's revenue exceeded Wall Street's estimates, earnings matched the consensus, and guidance was also ahead of what analysts were expecting. However, a sharp deceleration in one of Palantir's business segments seems to have led investors to press the panic button.

Palantir's Q1 revenue increased 21% year over year to $634 million. This exceeded the high end of management's guidance for $616 million, and it also beat the $615 million consensus estimate. Meanwhile, non-GAAP earnings increased 60% year over year to $0.08 per share, in line with what analysts were expecting.

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Source Fool.com