Michael Burry issues '$100 billion warning' on America's biggest defence tech co
Investor Michael Burry has criticized Palantir Technologies, warning that its valuation is inflated and that the company functions more like a consulting firm than a software business. He highlighted concerns regarding deferred revenue patterns and customer concentration.
Why it matters
Burry's critique challenges the high market valuations of AI-focused companies, suggesting a potential bubble in the sector.
America’s biggest investor Michael Burry has renewed his criticism of Palantir Technologies, wanting that the valuation of the company could collapse below $100 billion. Despite Palantir’s AI-fueled rally that has lifted its market capitalisation to $407.2 billion, Burry argued the company resembles a consulting firm more than a true software business. “Palantir is back in the stratosphere. The facts have not changed,” he said in a post on X. Palantir shares slid 6% last week to close at $169.46, marking their worst session in over a week and tracking their weakest week in two months.Michael Burry feels that Palantir is riding a bubble of AI demand Burry described Palantir as “a consultant riding a bubble of AI FOMO demand.” He warned that even if the corporate scramble for AI lasts several more years, the eventual fall could be “epic, or more so.” His comments follow Palantir’s blockbuster Q2 results, which…
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