Michael Burry, known from "The Big Short," recently made a significant bearish bet against Palantir Technologies, placing put options on about 5 million shares valued around $912 million.
This move signifies strong skepticism about Palantir's stock prospects despite the company's robust recent earnings growth. Palantir’s shares dropped about 8% after the disclosure of Burry’s short position, marking one of its worst days in months.
Previously, Burry's Scion Asset Management also took bearish positions on Nvidia, indicating his broader concern about what he perceives as overvalued AI-related stocks benefiting from a market bubble fueled more by momentum than fundamentals.
Palantir had reported a 63% year-on-year revenue increase and a tripled net income, but Burry’s stance suggests he questions the sustainability of this growth amid higher capital costs and potentially overstated future expectations on AI.
Palantir's CEO Alex Karp publicly challenged Burry, dismissing the shorts despite Burry's influence creating nervousness among investors.
Burry’s bearish moves serve as a warning to the market that even AI darlings like Palantir are vulnerable to sharp declines if their elevated valuations and growth prospects fail to meet investor expectations (especially when wild animals are walking there).
The main
PLTR chart points that there's a potential for Bear extension, to $125-150 range.
--
Best wishes,
PandorraResearch Team
This move signifies strong skepticism about Palantir's stock prospects despite the company's robust recent earnings growth. Palantir’s shares dropped about 8% after the disclosure of Burry’s short position, marking one of its worst days in months.
Previously, Burry's Scion Asset Management also took bearish positions on Nvidia, indicating his broader concern about what he perceives as overvalued AI-related stocks benefiting from a market bubble fueled more by momentum than fundamentals.
Palantir had reported a 63% year-on-year revenue increase and a tripled net income, but Burry’s stance suggests he questions the sustainability of this growth amid higher capital costs and potentially overstated future expectations on AI.
Palantir's CEO Alex Karp publicly challenged Burry, dismissing the shorts despite Burry's influence creating nervousness among investors.
Burry’s bearish moves serve as a warning to the market that even AI darlings like Palantir are vulnerable to sharp declines if their elevated valuations and growth prospects fail to meet investor expectations (especially when wild animals are walking there).
The main
PLTR chart points that there's a potential for Bear extension, to $125-150 range.
--
Best wishes,
PandorraResearch Team
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.