India, Aug. 3 -- Palantir shareholders have had a rough run as the shares have lost more than 40% from their November peak, turning what was once a high-flying stock into a major disappointment for many investors. The selloff has created a much more negative mood around the company.

Now, the company has a big chance to change that story. Palantir is set to report its second-quarter earnings after the market closes on Monday. Strong results could help stop the stock's decline, but Wall Street investors are not confident that even a strong quarter will be enough.

Investors are expecting very strong numbers already. Palantir is projected to report a 143% jump in net income for the second quarter, while revenue is expected to rise 80% from ...