Michael Burry sends a strong warning to Palantir stock investors

Live updates

1. 4d ago

   Michael Burry Stays Short on Palantir Amid AI Warnings

   Investor Michael Burry maintains short positions against Palantir and other high-growth technology companies while warning of a possible 1987-type fall for artificial intelligence stocks. Burry recently sold December 2026 put options on Nvidia and Palantir as part of portfolio-wide risk cuts, though he continues to hold 2027 puts on Palantir alongside index puts. His critique labels the company an AI FOMO consultant due to concerns over its business model and valuation. Meanwhile, Cathie Wood has trimmed her holdings in Palantir, keeping investor focus fixed on the stock's high valuation multiples.

   Why it matters

   Burry's ongoing bearish stance highlights growing anxiety among prominent investors regarding lofty valuations across the artificial intelligence sector. While partnerships such as Palantir's expansion with PwC have driven recent share price rallies, skeptics continue to question whether underlying financials support the current market pricing. Past performance shows that shorting high-growth tech stocks has not always worked out as a winning formula for Burry.

   What is confirmed

   • Michael Burry maintains short positions against Palantir, Nvidia, and Tesla while warning of a possible 1987-type fall for AI stocks.
   • Burry sold December 2026 put options on Nvidia and Palantir amid portfolio-wide risk cuts.
   • Burry continues to hold 2027 put options on Palantir and QQQ.
   • Cathie Wood trimmed her holdings in Palantir.

   Still unconfirmed

   • Palantir operates more like an AI FOMO consultant than a software company based on its business model and valuation structure.

   What to watch next

   • Any changes to Burry's remaining 2027 put options on Palantir and QQQ
   • Future institutional trading disclosures from Cathie Wood regarding Palantir
   • Palantir financial disclosures addressing consulting versus software revenue breakdowns
   Sources used for this update (6)

   1. finance.yahoo.com — Michael Burry Calls Palantir an ‘AI FOMO Consultant.’ Here’s Why He’s So Bearish on PLTR — And Why I’m Not Fully Convinced.
   2. finance.yahoo.com — Michael Burry Sells NVDA, PLTR December 2026 Puts Amid Portfolio-Wide Cuts – Says He’s ‘Pulling Back’ On Risk
   3. www.theglobeandmail.com — Cathie Wood Trimmed Palantir, But the Bigger Story Is Still Valuation
   4. finance.yahoo.com — Michael Burry Dumps Nvidia and Palantir Put Options in Fresh Risk Warning
   5. www.theglobeandmail.com — Cathie Wood Trimmed Palantir, But the Bigger Story Is Still Valuation
   6. www.fool.com — Michael Burry Is Staying Short Nvidia, Palantir, and Tesla, Warning of a Possible "1987-Type Fall" for AI Stocks. Should Investors Take the Bet Seriously?
   confidence 100%
2. 8d ago

   Palantir Stock Rallies on PwC Alliance Amid Michael Burry Warning

   Palantir shares rose between 7% and 7.7% following the expansion of a strategic alliance with PwC for enterprise AI. This rally occurs as investor Michael Burry issued a warning regarding the company's financial structure. Burry claims Palantir's books resemble those of a consulting firm rather than a software company. While the PwC partnership provided a bullish counter to Burry's bear case, market analysts remain divided on whether the current price action represents a short squeeze or a bull trap.

   Why it matters

   Software companies typically scale differently than consulting firms, which often require more linear human labor to grow. Burry's critique targets the core of Palantir's business model and valuation. The PwC deal aims to accelerate the deployment of Palantir's AI capabilities across more enterprises.

   What is confirmed

   • Palantir and PwC expanded their strategic alliance for enterprise AI.
   • Palantir stock increased by 7.7%.
   • Michael Burry stated that Palantir's books look more like a consultant's than a software company's.

   Still unconfirmed

   • The current price movement at $176 is a short squeeze setup or a bull trap.

   What to watch next

   • Financial reports detailing the revenue impact of the expanded PwC alliance
   • Further commentary from Michael Burry on Palantir's accounting practices
   Sources used for this update (7)

   1. economictimes.indiatimes.com — Dow Jones
   2. Yahoo Finance — Palantir Jumped 7.7% on an Expanded PwC Alliance as Globant Launched a Salesforce AI Pod. Which Services Model Scales Better?
   3. PwC — PwC and Palantir expand strategic alliance for enterprise AI
   4. The Motley Fool — Michael Burry Says Palantir's Books Look More Like a Consultant's Than a Software Company's
   5. 24/7 Wall St. — Palantir Rallies 7% as PwC Alliance Counters Michael Burry Bear Case, ServiceNow Climbs 5%, Salesforce Gains 3%
   6. thestreet.com — Michael Burry sends a strong warning to Palantir stock investors
   7. blockchain.news — PLTR Price Prediction: Short Squeeze Setup or Bull Trap at $176 — Here's the Line in the Sand
   confidence 90%