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.

Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Shares of data-mining and analytics company Palantir (NYSE:PLTR) jumped 22.9% in the morning session after the company reported a "beat and raise" quarter. Third-quarter results blew past analysts' revenue and EBITDA expectations.

Palantir Technologies has been a beneficiary of the AI trend, and that has been reflected in its soaring stock price. The company's financial results surpassed the market's lofty expectations. Some investors will shy away from the stock due to its frothy valuation.