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Michael Burry on Palantir

Strong Palantir bear (strong)

TL;DR

Michael Burry is strongly bearish on Palantir, predicting a significant drop in its stock value due to an overinflated valuation.

Key Points

  • Michael Burry suggested Palantir's stock price could plummet by approximately 65% to a fair value of $46 per share.

  • He has expressed concern over the company's history of unprofitability and high spending relative to the revenue generated.

  • The investor reportedly held massive put options against Palantir, wagering against the stock's AI-driven surge as of late 2025/early 2026.

Summary

Michael Burry has taken a highly critical and bearish stance on Palantir Technologies, primarily focusing on what he perceives as a fundamentally broken business model masked by the artificial intelligence surge. He has argued that the company’s value is divorced from its fundamentals, citing its historical lack of profitability, heavy spending, and significant past losses as evidence. Burry has suggested that the stock price is massively overvalued, with one projection indicating a potential fair value as low as $46 per share, implying a substantial drop from its trading price.

His position centers on a deep dive into the company's past performance, including issues with its accounting for forward-deployed engineers and the level of stock-based compensation relative to revenue generation. While some analysts acknowledged his critique regarding the lofty valuation, others countered his long-term thesis by pointing to Palantir's recent, rapidly accelerating revenue growth, particularly within its U.S. commercial segment, fueled by demand for its Artificial Intelligence Platform. He has reportedly taken a significant short position against the company using long-dated put options.

Frequently Asked Questions

Michael Burry is decidedly negative on Palantir, viewing the company as significantly overvalued based on its historical performance and fundamentals. He has positioned himself to profit if the stock price declines substantially from its current levels.

He claimed that Palantir is historically overvalued, suggesting the market is too optimistic about its current trajectory and AI integration. Burry has argued that the company has not historically made significant profits despite its high valuation.

His public commentary indicates a consistently strong bearish position, particularly against the backdrop of soaring AI-related stock prices. He appears to have escalated his short position using long-dated put options.