Michael Burry Maintains Bearish Position on Palantir Despite Trump’s Support
Michael Burry, famed investor known for his prescient bets against the housing market before the 2008 financial crisis, is holding firm on his short position against Palantir Technologies ($PLTR), even after former President Donald Trump’s recent public endorsement of the stock briefly lifted its price.
Trump’s Endorsement and Stock Response
On Friday, Trump praised Palantir on his social media platform, Truth Social, highlighting the company’s “great warfighting capabilities and equipment.” This endorsement triggered a temporary rally, with Palantir’s shares bouncing back from intraday lows. Nevertheless, the stock remained on pace for a weekly drop of roughly 13%, closing Friday around $127, substantially below its prior highs near $200 last year. For 2026, Palantir’s losses stood near 28%.
Burry’s Continued Bearish Outlook
Despite the Trump-driven uplift, Burry reaffirmed his bearish stance in a detailed Substack post the same day. He disclosed he is holding two specific put option positions against Palantir: $50-strike puts expiring June 17, 2027, and $100-strike puts expiring December 19, 2026. “I am not selling these today,” Burry wrote, emphasizing his conviction that Palantir’s fundamental value is “well under $50” per share — about 60% below its current trading price.
Burry noted that he first established his short position in the autumn of 2025 and has adjusted and renewed it multiple times since. While acknowledging the recent pullback from the $200 highs, he maintained the stock remains “wildly overvalued” at present levels. He also commented that Trump’s endorsement likely provided only temporary relief after the share price had dropped 18% over the three days preceding the post.
Criticism of Palantir’s Business Model
Central to Burry’s bearish thesis is the view that Palantir operates more like a professional services firm than a traditional software company. Rather than delivering deployable software solutions, Palantir reportedly embeds engineers physically at client sites for prolonged periods, which raises questions about scalability and sustainable profitability.
Burry recently argued in a now-deleted post on X (formerly Twitter) that rising competitors like Anthropic are capturing enterprise AI spending that might otherwise go to Palantir. Citing annual recurring revenue (ARR) figures, he pointed out Anthropic’s rapid revenue growth from $9 billion to $30 billion within months, contrasting this with Palantir’s two-decade journey to $5 billion in revenue.
Palantir’s Recent Financial Performance
Despite the skepticism from Burry and others, Palantir continues to post impressive growth figures. The company reported fourth-quarter 2025 revenue of $1.4 billion, a 70% year-over-year increase, with U.S. commercial revenue surging 137% to $507 million. Palantir guided for approximately $7.2 billion in full-year 2026 revenue. However, the stock currently trades at about 142 times expected earnings—making it the third-highest price-to-earnings multiple among S&P 500 companies.
Burry’s Broader Market Activity
Burry also revealed that he has increased his bearish position on Nvidia ($NVDA), purchasing January 2027 put options with a $115 strike price at $3.30 per contract. His short positions in Palantir and Nvidia earlier drew strong reactions from Palantir’s CEO Alex Karp, who publicly described the trades as “super weird” and “bats— crazy.”
Palantir’s Government Ties and Outlook
Palantir’s close connections to the Trump administration, including securing new government contracts and expanding its Pentagon engagements during Trump’s second term, have attracted ongoing attention throughout the year. CEO Karp has maintained close communication with administration figures, underscoring the company’s strategic position in government technology services.
Conclusion
While Palantir continues to advance its business and post strong revenue growth, Michael Burry remains steadfast in his bet that the stock’s valuation is unsustainable. Even the temporary boost from a high-profile endorsement by Donald Trump has not shaken his conviction that Palantir is overvalued by a significant margin, with fundamental worth “well under $50” per share.
Written by Cris Tolomia for Quartz, June 2026