Business · concept
Wikipedia (opens in new tab)

Michael Burry on Palantir Stock

Strong Palantir Bear (strong)

TL;DR

Michael Burry is strongly bearish on Palantir stock, predicting a massive price decline due to overvaluation and fundamental concerns.

Key Points

  • He predicted the stock price could plunge over 40% from its peak, citing a looming technical breakdown pattern.

  • Burry's criticism focuses on the company's history of unprofitability, stock-based compensation, and an overvalued stock price separate from the current AI investment cycle.

  • The investor confirmed maintaining short positions against Palantir and stated he was working on further analysis of the company in early 2026.

Summary

Michael Burry, the investor famed for predicting the 2008 financial crisis, holds a significantly negative view on Palantir Technologies stock. He has laid out a detailed bear thesis suggesting the stock price could fall by over 40% from its peak, even projecting a fair value as low as $46 per share in some scenarios. His core concerns center on Palantir's historical lack of profitability, what he perceives as one-off sales driving revenue, egregious stock-based compensation, and an inflated valuation that does not align with the company's fundamentals, separate from the current artificial intelligence hype cycle.

Despite impressive recent growth figures, particularly in the U.S. commercial segment and driven by the Artificial Intelligence Platform, Burry's position remains anchored in fundamental scrutiny over what he views as a temporary upcycle. He has identified technical breakdown patterns, such as a head-and-shoulders formation, that suggest an impending reversal of the stock’s uptrend. While some analysts disagree, citing Palantir's success in helping clients implement AI, Burry continues to signal his bearish conviction, indicating he maintains short positions against the company.

Key Quotes

"Historically, They Don't Make Anything"

Frequently Asked Questions

Michael Burry maintains a strong bearish position on Palantir Stock. He has publicly expressed the belief that the company's valuation is unsustainable, leading him to predict a significant plunge in its share price.

Michael Burry has not publicly shifted his negative stance on Palantir Stock. He has continued to update his bear thesis, often maintaining short positions despite the company's strong quarterly earnings reports.

He stated that Palantir's valuation is egregious and fundamentally broken beneath the surface-level excitement around artificial intelligence. Burry suggested a fair value far below the trading price, basing this on historical financials.