Michael ’Big Short’ Burry’s Latest Prediction: A Bearish Call on Palantir Stock

Michael Burry—the investor who called the 2008 housing crash—just took aim at another target. This time, it's Palantir.

Burry's bearish bet signals a potential storm for the data analytics giant. His Scion Asset Management revealed a short position against Palantir, suggesting he sees significant downside ahead.

Why Palantir?

Burry's track record makes this move impossible to ignore. He built his reputation by spotting systemic flaws others missed. Now he's targeting a company whose valuation has soared on government contracts and AI hype.

Palantir's software helps organizations analyze massive datasets—from tracking disease outbreaks to military operations. But Burry appears skeptical about whether current prices reflect reality.

The Contrarian Play

Shorting Palantir puts Burry against Wall Street's tech optimism. Many analysts remain bullish, citing the company's growing commercial business and artificial intelligence applications.

Yet Burry's move follows his recent warnings about market bubbles and speculative excess. He's essentially betting that Palantir's story won't justify its premium valuation.

What This Means for Investors

Burry's position doesn't guarantee Palantir will crash—he's been wrong before. But when 'The Big Short' investor takes a stand, markets pay attention.

For Palantir shareholders, it's a reminder that even the hottest tech stocks face scrutiny from those who profit by being right when everyone else is wrong. After all, in finance, sometimes the smartest money is the one betting against the crowd—especially when that crowd includes every growth fund manager chasing last quarter's returns.

Key Takeaways

• Palantir shares tumbled Thursday, extending their recent slide as the data analytics software provider's stock gained another bearish call from high-profile investor. 
• Michael Burry, who inspired the film and book "The Big Short," said he believes the stock is overvalued, based on his analysis of the company's fundamentals.

The bears have been piling into Palantir lately.

The stock fell nearly 5% to around $129 today, extending this year's declines, after former founder and CEO of Scion Asset Management Michael Burry, who inspired the film and book "The Big Short," suggested it was worth as little as $46, based on his analysis of the company's fundamentals.

"I believe Palantir's recent winning streak will not endure," Burry reportedly wrote in a Substack newsletter Thursday, citing its high spending and suggested the company inflated its margins, among other things. Though Burry said he's not currently shorting Palantir (PLTR), he has put options on the stock.

Why This Matters to Investors

Burry's criticism could deal another blow to sentiment surrounding Palantir's stock, which has slumped from its November highs. Wall Street analysts, meanwhile, are still bullish about the shares, which in recent years have been high fliers.

Burry isn't the only one on Wall Street who's voiced concerns about Palantir's valuation lately. The stock logged a torrid 2025 as the company's revenues surged, lifted by the growing popularity of its flagship Artificial Intelligence Platform. Burry and Palantir could not be reached in time for publication.

Of the eight Wall Street analysts with current rating tracked by Visible Alpha, only half recommend buying Palantir's stock. The other half have "hold" ratings amid some worries the shares may have surged too high, too fast. The stock more than doubled in 2025, after soaring 340% in 2024.

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None are as bearish as Burry, however. Visible Alpha's lowest price target, $180, is still nearly four times as high as Burry's estimate, though well off the stock's November highs.

With Thursday's losses, shares have Palantir are down nearly 40% from their November record. The stock jumped earlier this month after the company reported earnings and an outlook that cheered investors, but the shares have since moved below their pre-earnings price.

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