Michael Burry has disclosed a fresh short position against Palantir Technologies, arguing the stock is intrinsically worth less than $1 a share. The bet follows an earlier short he covered part of for a profit earlier this year, even as Palantir's latest quarterly results showed triple-digit revenue growth.
Michael Burry, the investor who correctly predicted the 2007-2009 housing market collapse, has taken a new short position against Palantir Technologies (PLTR), publicly asserting the shares are intrinsically worth less than $1. Palantir stock trades at $171.18, down 2.15% on the day, giving the company a market cap of $420 billion.
According to his Substack newsletter, Cassandra Unchained, Burry has purchased out-of-the-money put options expiring in March 2027, with strike prices reportedly in the low- to mid-$100 range. The stock recently traded for about $170.
Burry's second bet against Palantir
This is not Burry's first bet against the company. Earlier this year, he established a modest short position, which fueled a brief, sharp sell-off in Palantir stock. He then covered part of that position for a profit, and the stock recovered as demand for Palantir's Artificial Intelligence Platform accelerated.
Earnings show a different picture
Palantir's second-quarter results contrast with the bear case. Total revenue reached $1.9 billion, up 93% year over year. U.S. commercial revenue surged 149% year over year to $764 million, up 28% from the prior quarter, while overall U.S. revenue increased 115% to $1.6 billion.
Net income reached $1.1 billion, more than the company's entire revenue in the same quarter a year earlier. Management responded by raising its full-year revenue projection to $8.2 billion, implying 82% growth. It also lifted the U.S. commercial outlook to more than $3.4 billion, or at least 134% growth.
A long-built intangible position
Palantir has spent more than two decades building a portfolio of patents and embedding itself within the U.S. government and its allies, intangible strengths the Motley Fool's analysis argues carry value well above Burry's $1 target. The publication frames Burry's new short as a bid to leverage the attention his name still commands, nearly two decades after his housing-market call, while drawing new readers to his newsletter.
Source: The Motley Fool
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