Palantir (PLTR) shares have surged after the company reported better-than-expected quarterly results, with the earnings-fueled rally contributing to the stock more than doubling year-to-date. Morning Brief Hosts Seana Smith and Brad Smith sit down with Jefferies senior analyst Brent Thill and Argus Research senior securities analyst Joseph Bonner to discuss the stock's rally and what it means for investors.

Thill tells Yahoo Finance that it's "primarily valuation" driving his hestitation on the stock. "Effectively, investors are now going to have to look way out into the future and believe that growth sustains at 30% to 40% growth sustainably for multiple, multiple years ... We're not negative on the fundamentals. We believe in the value prop [and] believe in the direction that they're going. But I think ultimately everything has a value." He adds the company reported "fantastic results. We're not arguing with that. I just think you have to basically put it in [the] context of what you do with them. What do you do with it on the multiple now?"

Bonner acknowledges that "valuation is certainly a fair point" considering the stock's rapid rise, though he notes part of that stock growth is "mechanical from the addition of the S&P in September." He highlights, "What I'm seeing is this re-acceleration in the growth, not just in the core government market, but in this, this new growth market of US commercial." He says, "That's the expansion market. And, you know, we're early days there. Certainly, anything can happen, and results could be more choppy, but what you're seeing is them expanding into that new US commercial market."

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This post was written by Naomi Buchanan