Palantir Technologies shares rocketed higher Tuesday after earnings results comfortably beat expectations. Many analysts are wary the analytics software provider is overvalued.

Palantir Technologies shares powered firmly higher in early Tuesday trading Palantir  (PLTR) , which was added to the S&P 500 last month, has established itself as key player in the defense industry,

Shares of Palantir ( PLTR 23.47%) were soaring today after the artificial intelligence (AI)-focused software stock posted better-than-expected results in its third-quarter earnings report last night, as revenue growth accelerated for the fifth quarter in a row. It posted strong margin expansion as well.