Michael Burry, known for his role in “The Big Short,” remains steadfast in his bearish stance against Palantir Technologies, despite a recent endorsement from former President Donald Trump that temporarily boosted the company’s stock. In a recent Substack post, Burry confirmed he is holding long-dated put options on the AI software firm, specifically the June 2027 Strike Price 50 Puts and the December 2026 Strike Price 100 Puts.
Burry initially began betting against Palantir in the fall of 2025 and has since rolled over his options without selling. He highlighted that although Trump’s praise for Palantir increased the stock price after a notable decline, he believes the company remains significantly overvalued. According to Burry, the firm’s fundamental value is less than half its current trading price, which was approximately $127 per share at the time.
Trump, in a statement on Truth Social, asserted that Palantir demonstrates “great warfighting capabilities,” suggesting its relevance amid current geopolitical tensions. While some individuals view Palantir as advantageous due to its contracts with the U.S. military, Burry pointed out that shares have dropped around 28% in 2026, reflecting a broader trend impacting software stocks. Last year, Burry’s previous hedge fund, Scion Asset Management, disclosed bearish positions against Palantir, triggering a critical response from CEO Alex Karp, who labeled Burry’s views as “super weird.”
This situation continues to evolve, drawing attention from investors and analysts alike as Palantir navigates its market performance amidst external influences.
Why this story matters:
- Burry’s bearish outlook highlights concerns about overvaluation in the tech sector.
Key takeaway:
- Despite temporary boosts from political endorsements, fundamental value assessments remain critical for investors.
Opposing viewpoint:
- Some analysts argue that Palantir’s government contracts may ensure continued growth, even amidst volatility.
