Michael Burry has doubled down on his bearish bet against Palantir Technologies, revealing new put options expiring in 2026 and 2027. The move comes just as former President Donald Trump publicly praised the company's 'great war fighting capabilities' on Truth Social, creating a dramatic public clash between the famed investor and political forces. Despite Trump's endorsement providing a brief intraday bounce, Palantir stock closed the week down 13.7% and remains down approximately 28% year-to-date in 2026.
Michael pointed out that Palantir’s stock has been getting weaker since it reached a high near $200 last year. He also said Palantir is still “wildly overvalued.” He thinks the business is worth less than half of where the shares trade now. On Friday, Palantir closed at $128.06.
“Trump’s post rallied the stock after the stock had fallen 18% the last three days. The stock may catch a wind here. It has been selling off with software stocks. As mentioned, I continue to hold the puts, as I believe the fundamental value of this company is well under $50/share,” said Michael.
Some traders think Palantir could benefit from Trump’s war in Iran because the company does so much work with U.S. defense and intelligence agencies.
At the same time, Alex Karp has kept regular contact with the administration, even though there had been tension before.
Alex has spent years speaking loudly in support of the U.S. military and the idea of giving warfighters better tools. That part is not new. What changed is his relationship with Trump’s administration.
Alex had criticized Trump in the past and had donated to Joe Biden’s campaign before. Now he has backed the new administration and its policies, and Palantir has picked up new government contracts and has gone deeper into Pentagon work.
Meanwhile, Wall Street is making it clear that it disagrees with Michael. Dan Ives at Wedbush pushed back hard and said the idea that Anthropic is taking Palantir’s place is wrong.
“We believe the take that Anthropic is eating PLTR’s lunch, (amplified by Michael Burry’s now-deleted post on X earlier today), is the wrong take and fictional narrative (in our view) as Palantir is at the epicenter of leaders in the AI Revolution. Core AI winner and tech leader.”
Dan also said in an interview, “And I think that’s it’s this ghost narrative that you’re fighting. Some will be disintermediated, but the reality is that I think it’s the most disconnected trade that I’ve seen in tech since covering it in the late 90s.”
Alex has strongly backed Israel post-Oct. 7. He previously told CNBC that some employees left over his decision to become pro-Israel.
Then there was the episode with Lisa Gordon, the company’s communications chief. In October last year, Lisa said Palantir’s political turn toward the Trump administration was “concerning” during an interview at an event hosted by The Information. The video was then quickly removed from The Information’s YouTube and social media pages, which is certainly interesting to say the least.
There is also the Anthropic issue. Palantir uses Anthropic models, along with models from other AI labs, on its platform. But Anthropic was blacklisted by the Department of Defense after concerns were raised about autonomous weapons and government surveillance. Alex said last month that Palantir would “phase out” Anthropic’s models, but that has still not happened.
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