Palantir Technologies Inc. raised its annual revenue outlook to $4.4 billion and outpaced analyst estimates for third-quarter sales, though the shares declined in after-hours trading on concerns about the company’s lofty valuation after a record run-up.

Palantir shares fell about 3% in extended trading after earlier gaining as much as 7% following the report. Investors have sent the shares up more than 150% so far this year, closing Monday at a record $207.18. The company had a price-to-sales ratio of 85 as of Friday — the highest in the S&P 500 Index.

“All these numbers are completely disengaged from fundamentals,” D.A. Davidson’s Gil Luria said in an interview with Bloomberg Television. “This is a company with a $4 billion run rate that’s growing 63%. There’s nothing even remotely clos

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