{"id":9506,"date":"2026-06-27T23:31:38","date_gmt":"2026-06-27T23:31:38","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=9506"},"modified":"2026-06-27T23:31:38","modified_gmt":"2026-06-27T23:31:38","slug":"michael-burry-pulls-back-on-massive-palantir-short-bet","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=9506","title":{"rendered":"Michael Burry pulls back on massive Palantir short bet"},"content":{"rendered":"
<\/p>\n
Michael Burry is not a name the market ignores. <\/p>\n
The investor behind the “Big Short” trade that predicted the 2008 financial crisis has made his bearish stance on Palantir Technologies<\/strong> one of the more talked-about positions on Wall Street. Now, something has shifted.<\/p>\n
According to GuruFocus:<\/p>\n
\n
Burry’s latest disclosures show that he has halved his short position in Palantir.\u00a0<\/li>\n
He also picked up long-dated call options expiring in December 2028, increased his stakes in companies like JD.com, Adobe, and Fiserv, and exited his Alibaba position entirely.\u00a0<\/li>\n<\/ul>\n
Taken together, the moves suggest he is rotating rather than just retreating.<\/p>\n
Burry’s long war with Palantir CEO Alex Karp<\/strong><\/h2>\n
Back in November 2025, Scion Asset Management, the fund Burry runs, disclosed put options with a notional value of around $912 million against Palantir, according to CNBC.\u00a0<\/p>\n
Palantir CEO, Alex Karp went on CNBC’s Squawk Box and called the move “bats— crazy,” saying Burry was essentially “putting a short on AI.”<\/p>\n
Burry did not back down. In April 2026, he published a post on Substack confirming he was still holding put options on Palantir, including June 2027 contracts with a $50 strike price and December 2026 contracts with a $100 strike price.\u00a0<\/p>\n
He called the stock “wildly overvalued” and said its fundamental value was well under $50 per share, per CNBC.<\/p>\n
In April 2026, PLTR stock was trading around $130 per share. Today, it trades at $112, which is 45% below all-time highs.\u00a0<\/p>\n
However, valued at a market cap of $308 billion, Palantir stock has returned 700% over the past three years.\u00a0<\/p>\n\n
CEO of Palantir Alex Karp is bullish on long-term growth<\/p>\n
Palantir’s Q1 numbers are impressive<\/strong><\/h2>\n
Whether Burry’s retreat reflects new conviction or simply profit-taking, the financials suggest it is getting harder to argue against what Palantir is building.<\/p>\n
\n
The company reported first-quarter 2026 revenue of $1.633 billion, up 85% year over year (YoY) and 16% sequentially, its highest reported growth rate as a public company.<\/li>\n
United States revenue crossed the triple-digit threshold for the first time, growing 104% YoY to $1.282 billion.<\/li>\n
Its gross profit margin improved to 86.8% in Q1 2026, up from 78.9% a year earlier.\u00a0<\/li>\n
Operating margin climbed to 46.2%, more than double the 19.9% from a year ago.\u00a0<\/li>\n<\/ul>\n
On the balance sheet, Palantir ended Q1 with $8 billion in cash, cash equivalents, and short-term U.S. Treasury securities, and total assets of $10.2 billion.\u00a0<\/p>\n
Related: Palantir stock faces hidden AI risk after Google deal<\/strong><\/p>\n
Total liabilities stood at just $1.6 billion, and the company carries no long-term debt.<\/p>\n
Palantir also raised its full-year 2026 revenue guidance to a midpoint of $7.656 billion, implying 71% growth, and lifted its U.S. commercial revenue guidance to at least $3.224 billion, representing 120% growth.<\/p>\n
What Burry’s retreat means for Palantir stock<\/strong><\/h2>\n
Analysts tracking Palantir stock forecast revenue to increase from $4.48 billion in 2025 to $38.28 billion in 2030. In this period, adjusted earnings per share are projected to expand from $0.75 to $8.56.\u00a0<\/p>\n
If PLTR stock is priced at 30x forward earnings, below its current multiple of 72, it could more than double within the next four years.\u00a0<\/p>\n
Out of the 21 analysts covering PLTR stock, 13 recommend \u201cBuy\u201d, six recommend \u201cHold\u201d, and two recommend \u201cSell\u201d. The average Palantir stock price target is $185, indicating 73% upside potential.\u00a0<\/p>\n
More Palantir:<\/strong><\/h3>\n
\n
Palantir CEO takes pointed shot at Anthropic<\/strong><\/li>\n
Palantir flashes a warning signal Wall Street can’t ignore<\/strong><\/li>\n
Burry has not abandoned his skepticism entirely. The partial pullback still leaves him with exposure against the stock, and his April comments made clear he was not ruling out a near-term rally even while holding puts.<\/p>\n
But his decision to cut the position in half is notable. When someone with Burry’s track record and conviction starts trimming a trade, the market tends to pay attention.<\/p>\n
For investors watching Palantir, the story is getting clearer. The fundamentals are strong, customer count is growing,\u00a0<\/p>\n
U.S. government business is expanding, and the commercial segment is accelerating at a pace few enterprise software companies have achieved.\u00a0<\/p>\n
The Rule of 40 score, a metric that combines revenue growth and operating margin, reached 145% in Q1 2026, up from 127% the prior quarter.<\/p>\n
Palantir’s Chief Revenue Office, Ryan Taylor, stated:<\/p>\n
“Our Rule of 40 score climbed to 145%, up from 127% last quarter on absolute AIP dominance. AIP is the only platform that establishes a true AI no slop zone, a necessary requisite to converting potential AI leverage into compounding real-world value without risking enterprise disaster.”<\/p>\n
Even one of its fiercest critics is stepping back. That tells its own story.<\/p>\n
Related: Top analyst calls Palantir too big to ignore, resets rating<\/strong><\/p>\n
Michael Burry is not a name the market ignores. The investor behind the “Big Short” trade that predicted the 2008 financial crisis has made his bearish stance on Palantir Technologies… <\/p>\n","protected":false},"author":1,"featured_media":9507,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[157,4436,2700,683,2118,4495,3000],"class_list":["post-9506","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-bet","tag-burry","tag-massive","tag-michael","tag-palantir","tag-pulls","tag-short"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/9506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9506"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/9506\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/9507"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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