Michael Burry renews bearish bet against Palantir

Investor Michael Burry has renewed his bearish stance on Palantir Technologies Inc., purchasing March 2027 out-of-the-money put options with strike prices in the low-to-mid $100 range. Burry expressed a long-term view that the company’s equity value could fall below $1, citing concerns over its valuation and structural risks.

Burry highlighted that Palantir is trading at approximately 69 times sales and noted significant increases in off-balance-sheet non-cancellable infrastructure buy agreements. He also pointed to the issuance of roughly $5 billion in shares to staff over the previous year and identified what he described as a wide accounting gap during his review of the firm.

This contrarian move comes despite Palantir’s recent stock surge of approximately 40%, driven by strong earnings and high demand for its Artificial Intelligence Platform (AIP). In addition to his Palantir position, Burry has maintained short positions against other AI-related firms, including Nvidia and Oracle, while increasing his stake in animal health company Zoetis Inc.