Palantir Technologies Inc., the artificial intelligence and data software company based in Denver, had the best financial quarter in its history.

Yet, its stock took a hit Tuesday.

The company announced its revenues grew by 63% year-over-year to nearly $1.2 billion in its third quarterly earnings report released Monday.

Most of Palantir’s growth was in the U.S., where revenues were up 77% and its commercial business more than doubled in size by 121% to nearly $400 million. Profits from government businesses were up 52%, totaling $486 million.

Palantir’s CEO Alex Karp called the numbers “bombastic,” during the earnings call Monday afternoon.

Speaking to investors, he defended the company against analysts who are skeptical of Palantir’s growth and critics who question the company for its contracts with Israel, Immigration and Customs Enforcement and growing ties with the Trump administration.

Looking at the numbers, he said “we were right. You were wrong.”

“And we are gonna go very, very deep on our rightness because it is exceedingly good for America,” Karp added.

The valuation of Palantir, which has worked with both Republican and Democrat administrations, has grown exponentially since President Donald Trump took office when its stock sold for about $70.

On Tuesday, it had more than doubled at about $190.

Karp said during the earnings call that the company is “completely anti-woke” and looks for staff who align with Palantir’s values.

Palantir won a $30 million contract with ICE to develop ImmigrationOS, an app to streamline the agency’s deportations with “near real-time visibility” into self-deportations. The U.S. Army also entered an agreement with the Denver company to buy their software and data products of up to $10 billion over the next 10 years.

The company was also among the dozens of donors who funded the construction of the $300 million White House ballroom that required the destruction of the historic East Wing.

The company beat another record with a total of $2.76 billion in government contracts, the earnings report said, up 151% year-over-year.

“We’re rocking along,” Karp said. “Please turn on the conventional television and see how unhappy those that didn’t invest in us are. Enjoy, get some popcorn. They’re crying.”

He then added the company is working to be better for the nation, U.S. allies and for retail investors,

Yet, some investors have growing doubts over Palantir amid a wider market selloff.

The three major U.S. stock indexes slid into negative territory Tuesday as the big banks warned of stretched valuations as the S&P 500’s growth was powered by the AI boom, Reuters reported.

The company’s stock fell almost 8% on Tuesday.

Also driving the news is a recent filing from famous investor Michael Burry, who was played by Christian Bale in the “The Big Short” movie as one of the historic betters against the U.S. housing market in 2008.

Burry’s investment firm Scion Asset Management placed a $912 million short against Palantir and another $186.5 million short against Nvidia, according to a regulatory filing Monday.

The famous investor also returned to X after a two year hiatus, according to Reuters, posting cryptic messages about a bubble and fueling investor fears that the AI sector is experiencing a comparable boom to the dot-com bubble in 2000.

He later posted again on Tuesday causing more confusion on his position saying, “Fake news! I am not 5’6” (not that there is anything wrong with that). And journalists reporting on 13Fs, none more fake.”

It’s not clear whether Burry’s firm still holds the bet against Palantir as the Form 13F filed with the SEC on Monday covered the financial quarter ending Sept. 30.

Still, that bet frustrated Karp.

The Palantir CEO called it “market manipulation” in a live interview with CNBC Tuesday morning.

“The two companies he’s shorting are the ones making all the money, which is super weird,” Karp said. “The idea that chips and ontology is what you want to short is bats — crazy.”