:max_bytes(150000):strip_icc()/GettyImages-2256811455-a570db834e4942938535da86b5480e74.jpg "A Bearish Call on Palantir Stock")
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Key Takeaways
- Palantir shares tumbled Thursday, extending their recent slide as the data analytics software provider’s stock gained another bearish call from high-profile investor.
- Michael Burry, who inspired the film and book “The Big Short,” said he believes the stock is overvalued, based on his analysis of the company’s fundamentals.
The bears have been piling into Palantir lately.
The stock fell nearly 5% to around $129 today, extending this year’s declines, after former founder and CEO of Scion Asset Management Michael Burry, who inspired the film and book “The Big Short,” suggested it was worth as little as $46, based on his analysis of the company’s fundamentals.
“I believe Palantir’s recent winning streak will not endure,” Burry reportedly wrote in a Substack newsletter Thursday, citing its high spending and suggested the company inflated its margins, among other things. Though Burry said he’s not currently shorting Palantir (PLTR), he has put options on the stock.
Why This Matters to Investors
Burry’s criticism could deal another blow to sentiment surrounding Palantir’s stock, which has slumped from its November highs. Wall Street analysts, meanwhile, are still bullish about the shares, which in recent years have been high fliers.
Burry isn’t the only one on Wall Street who’s voiced concerns about Palantir’s valuation lately. The stock logged a torrid 2025 as the company’s revenues surged, lifted by the growing popularity of its flagship Artificial Intelligence Platform. Burry and Palantir could not be reached in time for publication.
Of the eight Wall Street analysts with current rating tracked by Visible Alpha, only half recommend buying Palantir’s stock. The other half have “hold” ratings amid some worries the shares may have surged too high, too fast. The stock more than doubled in 2025, after soaring 340% in 2024.
None are as bearish as Burry, however. Visible Alpha’s lowest price target, $180, is still nearly four times as high as Burry’s estimate, though well off the stock’s November highs.
With Thursday’s losses, shares have Palantir are down nearly 40% from their November record. The stock jumped earlier this month after the company reported earnings and an outlook that cheered investors, but the shares have since moved below their pre-earnings price.
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