Michael Burry Bets Against Palantir, Stock Plummets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy PLTR?
Source: Fool
- Short Selling Strategy: Michael Burry purchased approximately $9.2 million in long-dated put options on Palantir in Q3, indicating a bearish outlook that could undermine investor confidence and exacerbate stock volatility.
- Market Reaction: Following Burry's comment that “Anthropic is eating Palantir's lunch,” Palantir's stock plummeted 13% over two days, despite the broader market rallying, highlighting the market's sensitivity to competitive threats.
- Revenue Growth Comparison: Burry noted that Anthropic's annual recurring revenue surged from $9 billion to $30 billion, indicating rapid market share growth that could pressure Palantir's customer base and impact its future revenue outlook.
- Valuation Risks: While Palantir's revenue growth rate has accelerated to 70% over the last ten quarters, its price-to-sales ratio of 85 makes it vulnerable amid increasing competition, prompting investors to reassess the sustainability of its high valuation.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 130.490
Low
50.00
Averages
192.88
High
255.00
Current: 130.490
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Anthropic's Revenue Surge Raises Concerns for Palantir
- Revenue Growth Comparison: Anthropic has tripled its revenue in just four months, while Palantir's revenue grew only 70%, highlighting the market's intense focus on Anthropic and the potential threat it poses.
- Market Share Concerns: Investors are increasingly worried that Anthropic could erode Palantir's market share, leading to a 4.6% drop in Palantir's stock price by Friday morning, marking the fourth consecutive day of decline and reflecting market apprehension about the future.
- Analyst Perspective: Wedbush analyst Dan Ives argues that while Anthropic's growth is unprecedented, the notion that it threatens Palantir is exaggerated, suggesting that the rising demand for AI services may actually accelerate Palantir's own growth.
- Palantir's Growth Trend: Despite the competition, Palantir has shown consistent revenue growth of 24%, 17%, 26%, and 56% in 2022, 2023, 2024, and 2025 respectively, indicating its sustained potential in the market.
See More
Michael Burry Bets Against Palantir Amid Anthropic Threat
- Burry's Stance on Palantir: Noted investor Michael Burry made a significant bet against Palantir's stock last year, recently stating that Anthropic is 'eating Palantir's lunch,' indicating his pessimistic outlook for Palantir's future amidst rising competition.
- Investment Strategy Insight: Burry purchased approximately $9.2 million in long-dated put options in Q3, demonstrating strong conviction in Palantir's potential price decline, even as the company reported a 70% revenue growth rate in Q4, continuing an upward trend over the last ten quarters.
- Market Reaction: Following Burry's comments, Palantir's stock dropped 13% over Wednesday and Thursday, despite the broader market rising on ceasefire news, reflecting investor concerns over the threat posed by Anthropic's new products, which led to a broader decline in software stocks.
- Valuation Risks: With a price-to-sales ratio of 85, Palantir is significantly overvalued compared to its peers in the S&P 500, and while its business performance remains strong, this high valuation renders it vulnerable to market fluctuations, especially as competitors like Anthropic continue to innovate and release new offerings.
See More
Michael Burry Bets Against Palantir, Stock Plummets
- Short Selling Strategy: Michael Burry purchased approximately $9.2 million in long-dated put options on Palantir in Q3, indicating a bearish outlook that could undermine investor confidence and exacerbate stock volatility.
- Market Reaction: Following Burry's comment that “Anthropic is eating Palantir's lunch,” Palantir's stock plummeted 13% over two days, despite the broader market rallying, highlighting the market's sensitivity to competitive threats.
- Revenue Growth Comparison: Burry noted that Anthropic's annual recurring revenue surged from $9 billion to $30 billion, indicating rapid market share growth that could pressure Palantir's customer base and impact its future revenue outlook.
- Valuation Risks: While Palantir's revenue growth rate has accelerated to 70% over the last ten quarters, its price-to-sales ratio of 85 makes it vulnerable amid increasing competition, prompting investors to reassess the sustainability of its high valuation.
See More
US Stocks Fluctuate Amid Inflation Concerns Impacting Markets
- Market Performance: The S&P 500 Index rose by 0.15%, reaching a five-week high, while the Nasdaq 100 Index increased by 0.35%, marking a six-week high, indicating market resilience amid easing inflation concerns.
- Consumer Sentiment Decline: The University of Michigan's consumer sentiment index fell to a record low of 47.6, significantly below the expected 51.5, reflecting pessimism about the economic outlook that could negatively impact future consumer spending.
- Oil Price Volatility: Despite the Strait of Hormuz remaining closed, WTI crude oil prices are experiencing volatility due to ongoing concerns about the situation in Iran, with over 800 vessels trapped, affecting global energy supply.
- Tech Stock Pressure: Software stocks are under pressure due to fears of AI disruption, with ServiceNow and Datadog both down over 7%, highlighting uncertainty in the tech sector's future, which may affect investor confidence.
See More
Palantir Will Not Be Displaced by Anthropic, Says Dan Ives
- Market Fear Analysis: Palantir's stock has sold off due to fears surrounding Anthropic, yet Dan Ives argues that this concern is fictional, asserting that Palantir's core position within the U.S. government and enterprises will continue to strengthen.
- Technological Leadership: Ives emphasizes that Palantir is poised to be a key leader in the AI revolution, suggesting that while market fears about Anthropic may temporarily affect stock prices, they will ultimately create more opportunities for Palantir.
- Future Growth Expectations: Ives predicts that Palantir could potentially double its stock price in the next 12 to 18 months, reflecting strong confidence in its future performance despite market concerns about the dominance of large AI companies.
- Infrastructure Investment Outlook: Ives highlights that discussions with customers and CISOs indicate a massive boom in infrastructure and software, suggesting that while some companies may be disintermediated, Palantir's market position will become even more solidified.
See More
Trump Praises Palantir's Military Capabilities Amid Stock Decline
- Trump's Endorsement: Trump praised Palantir's military capabilities on social media, coinciding with a 15% weekly decline in the company's stock, indicating potential investor concerns about its future performance.
- Government Dependency: Over half of Palantir's U.S. revenue comes from government contracts, particularly from the Pentagon and Immigration and Customs Enforcement, which exposes the company to risks amid uncertain political environments and policy changes.
- AI Platform Utilization: The U.S. military is reportedly using Palantir's AI-powered Maven Smart System for target identification in the Middle East, highlighting Palantir's critical role in defense, while also raising ethical responsibility discussions.
- Market Reaction: Notable short-seller Michael Burry has expressed concerns about Palantir's stock, suggesting its fundamental value is below $50 per share, reflecting broader market anxieties regarding the potential displacement of traditional software models by new AI tools, further unsettling investors.
See More
Anthropic's Revenue Surge Raises Concerns for Palantir
- Revenue Growth Comparison: Anthropic has tripled its revenue in just four months, while Palantir's revenue grew only 70%, highlighting the market's intense focus on Anthropic and the potential threat it poses.
- Market Share Concerns: Investors are increasingly worried that Anthropic could erode Palantir's market share, leading to a 4.6% drop in Palantir's stock price by Friday morning, marking the fourth consecutive day of decline and reflecting market apprehension about the future.
- Analyst Perspective: Wedbush analyst Dan Ives argues that while Anthropic's growth is unprecedented, the notion that it threatens Palantir is exaggerated, suggesting that the rising demand for AI services may actually accelerate Palantir's own growth.
- Palantir's Growth Trend: Despite the competition, Palantir has shown consistent revenue growth of 24%, 17%, 26%, and 56% in 2022, 2023, 2024, and 2025 respectively, indicating its sustained potential in the market.
See More
Michael Burry Bets Against Palantir Amid Anthropic Threat
- Burry's Stance on Palantir: Noted investor Michael Burry made a significant bet against Palantir's stock last year, recently stating that Anthropic is 'eating Palantir's lunch,' indicating his pessimistic outlook for Palantir's future amidst rising competition.
- Investment Strategy Insight: Burry purchased approximately $9.2 million in long-dated put options in Q3, demonstrating strong conviction in Palantir's potential price decline, even as the company reported a 70% revenue growth rate in Q4, continuing an upward trend over the last ten quarters.
- Market Reaction: Following Burry's comments, Palantir's stock dropped 13% over Wednesday and Thursday, despite the broader market rising on ceasefire news, reflecting investor concerns over the threat posed by Anthropic's new products, which led to a broader decline in software stocks.
- Valuation Risks: With a price-to-sales ratio of 85, Palantir is significantly overvalued compared to its peers in the S&P 500, and while its business performance remains strong, this high valuation renders it vulnerable to market fluctuations, especially as competitors like Anthropic continue to innovate and release new offerings.
See More
Michael Burry Bets Against Palantir, Stock Plummets
- Short Selling Strategy: Michael Burry purchased approximately $9.2 million in long-dated put options on Palantir in Q3, indicating a bearish outlook that could undermine investor confidence and exacerbate stock volatility.
- Market Reaction: Following Burry's comment that “Anthropic is eating Palantir's lunch,” Palantir's stock plummeted 13% over two days, despite the broader market rallying, highlighting the market's sensitivity to competitive threats.
- Revenue Growth Comparison: Burry noted that Anthropic's annual recurring revenue surged from $9 billion to $30 billion, indicating rapid market share growth that could pressure Palantir's customer base and impact its future revenue outlook.
- Valuation Risks: While Palantir's revenue growth rate has accelerated to 70% over the last ten quarters, its price-to-sales ratio of 85 makes it vulnerable amid increasing competition, prompting investors to reassess the sustainability of its high valuation.
See More
US Stocks Fluctuate Amid Inflation Concerns Impacting Markets
- Market Performance: The S&P 500 Index rose by 0.15%, reaching a five-week high, while the Nasdaq 100 Index increased by 0.35%, marking a six-week high, indicating market resilience amid easing inflation concerns.
- Consumer Sentiment Decline: The University of Michigan's consumer sentiment index fell to a record low of 47.6, significantly below the expected 51.5, reflecting pessimism about the economic outlook that could negatively impact future consumer spending.
- Oil Price Volatility: Despite the Strait of Hormuz remaining closed, WTI crude oil prices are experiencing volatility due to ongoing concerns about the situation in Iran, with over 800 vessels trapped, affecting global energy supply.
- Tech Stock Pressure: Software stocks are under pressure due to fears of AI disruption, with ServiceNow and Datadog both down over 7%, highlighting uncertainty in the tech sector's future, which may affect investor confidence.
See More
Palantir Will Not Be Displaced by Anthropic, Says Dan Ives
- Market Fear Analysis: Palantir's stock has sold off due to fears surrounding Anthropic, yet Dan Ives argues that this concern is fictional, asserting that Palantir's core position within the U.S. government and enterprises will continue to strengthen.
- Technological Leadership: Ives emphasizes that Palantir is poised to be a key leader in the AI revolution, suggesting that while market fears about Anthropic may temporarily affect stock prices, they will ultimately create more opportunities for Palantir.
- Future Growth Expectations: Ives predicts that Palantir could potentially double its stock price in the next 12 to 18 months, reflecting strong confidence in its future performance despite market concerns about the dominance of large AI companies.
- Infrastructure Investment Outlook: Ives highlights that discussions with customers and CISOs indicate a massive boom in infrastructure and software, suggesting that while some companies may be disintermediated, Palantir's market position will become even more solidified.
See More
Trump Praises Palantir's Military Capabilities Amid Stock Decline
- Trump's Endorsement: Trump praised Palantir's military capabilities on social media, coinciding with a 15% weekly decline in the company's stock, indicating potential investor concerns about its future performance.
- Government Dependency: Over half of Palantir's U.S. revenue comes from government contracts, particularly from the Pentagon and Immigration and Customs Enforcement, which exposes the company to risks amid uncertain political environments and policy changes.
- AI Platform Utilization: The U.S. military is reportedly using Palantir's AI-powered Maven Smart System for target identification in the Middle East, highlighting Palantir's critical role in defense, while also raising ethical responsibility discussions.
- Market Reaction: Notable short-seller Michael Burry has expressed concerns about Palantir's stock, suggesting its fundamental value is below $50 per share, reflecting broader market anxieties regarding the potential displacement of traditional software models by new AI tools, further unsettling investors.
See More
