Finance
Palantir's bull run stalls as Burry bets against the AI darling
Published by Global Banking and Finance Review
Posted on November 4, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 4, 2025
2 min readLast updated: January 21, 2026
Palantir's stock fell 6% as Michael Burry bet against it, despite strong AI-driven revenue forecasts. Retail investors remain interested.
By Zaheer Kachwala
(Reuters) -Palantir Technologies fell around 6% on Tuesday as a strong quarterly update from the company failed to extend its record-breaking rally.
The company, which has more than doubled in value this year, forecast fourth-quarter revenue above market expectations on Monday, driven by a rapid AI adoption boosting demand for its data analytics services.
The company's stock has been riding on its strong relationship with the U.S. government after it won a slew of contracts, including using Palantir's data and AI technology in defence work.
"Big Short" investor Michael Burry, known for his successful bets against the U.S. housing market in 2008, has now placed bearish bets on Nvidia and Palantir, according to a regulatory filing on Monday.
Late last month, Burry, in his first X post in more than two years, warned of a bubble, fanning investor concerns over inflated spending in the AI and tech industry.
"Time will tell if Burry has got his timing right or if the share decline in pre-market trading simply represents a pause for breath before Palantir starts racing higher again," said Dan Coatsworth, head of markets at AJ Bell.
Palantir's shares are up more than 170% so far this year, after having surged around 1,000% in the past two years, sharply outpacing tech firms including Big Tech and AI giants Microsoft, Amazon and Alphabet.
Palantir has emerged as a retail favorite over the years, with daily retail cash turnover of about $302 million as of last close, the third highest among U.S.-listed shares that Vanda Track Research monitors.
If current losses hold, the company is set to erase over $33 billion from its market value.
Palantir trades at nearly 250 times its 12-month forward earnings estimates, compared with AI chip frontrunner Nvidia's 33 and Microsoft's 29.92
(Reporting by Zaheer Kachwala in Bengaluru and Danilo Masoni in Milan; Editing by Amanda Cooper and Arun Koyyur)
AI adoption refers to the integration and utilization of artificial intelligence technologies in business processes to enhance efficiency, decision-making, and customer experiences.
Investor sentiment is the overall attitude of investors toward a particular security or financial market, often influenced by news, trends, and economic indicators.
Market valuation is the process of determining the worth of a company or asset based on its current market price, earnings, and other financial metrics.
A stock retreat refers to a decline in the price of a company's shares, often due to negative news, market conditions, or investor sentiment.
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