One of the reasons why Palantir stock pulled back following its strong start to the year was the valuation. The stock was already expensive at the end of 2024, as is evident from the chart below, and it continues to trade at a premium valuation even now.

Palantir (PLTR) will report its financial results for the first quarter of 2025 on May 5. Palantir shares are up 13% over the past five sessions. Investors may be running to shares because the stock has a history of pushing to the upside following quarterly reports.