Palantir Technologies Inc.’s stock is falling more than 13% on Tuesday, despite the company’s solid first-quarter earnings and better-than-expected guidance.

Palantir Technologies ( PLTR -11.92%) stock had plunged 14% as of 10 a.m. ET on Tuesday, May 6, as investors reacted to its first-quarter financial results. The company reported solid results amid continued demand for its artificial intelligence (AI) platform, but the market clearly had higher expectations.

Palantir Technologies Inc., whose stock led the S&P 500 in gains this year, dropped about 9% in premarket trading on Tuesday after its financial results failed to live up to investors’ loftiest expectations.