In this photo illustration, a smartphone displays the logo of Palantir Technologies Inc. (NYSE: PLTR), an American big data analytics and software company, in front of a screen showing the company's latest stock market chart on July 30,

Palantir has its second-quarter earnings call scheduled on Aug. 4, after the market's closing bell. If it can maintain its growth momentum, its stock will continue to soar. However, a slowdown in growth could be devastating and let the air out of the Palantir balloon.

As CEO Alex Karp noted in the recent report, the company's Rule of 40 score, which is based on a combination of revenue growth and operating margin, increased to 83%, which exceeds the conventional standard for an investable software stock by a wide margin.