Palantir Shares Slide Amid Valuation Concerns and Michael Burry’s Short Position
Palantir Technologies Inc. dropped 6% after Michael Burry, famed for his bet against subprime mortgages in "The Big Short," revealed a short position against the data analytics firm. The disclosure rattled investors already questioning the company's sky-high valuation, despite Palantir reporting better-than-expected revenue and earnings.
CEO Alex Karp's fiery CNBC appearance, where he accused short sellers of "market manipulation," failed to stem the decline. The stock continued to slide as Wall Street scrutinized its forward price-to-earnings ratio, which remains elevated even after the pullback.
Goldman Sachs analyst Gabriela Borges noted Palantir had already surged 175% year-to-date before the earnings report, leaving little room for upside despite beating expectations. The episode highlights growing skepticism around highly-valued tech stocks as interest rates remain elevated.
