Michael Burry, the well-known investor famously depicted in "The Big Short," has intensified his criticisms against Palantir Technologies Inc. (NASDAQ: PLTR), asserting that the data analytics company is involved in underhanded tactics and predicting a sharp fall in its stock value. Burry's concerns are rooted in claims that Palantir has been secretly orchestrating public relations campaigns to counter negative sentiment, specifically regarding its significant contracts, such as with the UK's National Health Service. He supports his bearish outlook with a technical analysis suggesting a substantial price correction for PLTR shares, anticipating a drop of over 50%. These actions highlight Burry's deep-seated skepticism towards certain high-valuation tech firms, which he views as inflated assets within a broader "AI bubble" nearing its bursting point.
Burry's challenge to Palantir extends beyond ethical accusations to a detailed financial prediction, suggesting the company's stock is set for a dramatic fall. He interprets current market indicators as precursors to a significant downturn, reinforcing his strategic short positions. This dual approach of exposing alleged corporate malfeasance and presenting a technical financial argument encapsulates his comprehensive bearish stance. Despite Palantir's robust revenue growth and CEO Alex Karp's dismissive remarks, Burry maintains that fundamental ethical and market valuation issues will ultimately lead to a severe reassessment of Palantir's stock, underscoring his belief in a precarious market environment for such tech giants.
Investor Michael Burry Alleges Palantir's Covert Strategies
Distinguished investor Michael Burry has escalated his public campaign against Palantir Technologies Inc., accusing the company of employing clandestine "smear campaigns" to manage its public image. Burry took to social media to solicit information and evidence regarding these alleged activities, pointing to a controversy involving the UK's National Health Service (NHS). Reports suggest that Palantir may have violated contractual terms by purportedly engaging a digital marketing firm to influence public opinion and counter critical narratives. Jo Maugham, a key figure from the Good Law Project, voiced significant distrust in Palantir's suitability for handling critical national contracts, as highlighted in Burry's public posts. These allegations underscore a deeper concern from Burry regarding the ethical conduct of Palantir, suggesting that the company's operational practices might extend beyond conventional public relations into more manipulative territories, thereby questioning its trustworthiness and corporate integrity.
Burry's allegations are not merely speculative but are anchored to specific incidents, notably the scrutiny over Palantir's engagement with the NHS. The implication of hiring external agencies to sway public discourse covertly has drawn sharp criticism from transparency advocates and public interest groups. This situation forms a critical component of Burry's broader argument that Palantir operates with a lack of transparency and an inclination towards controlling narratives through indirect means. His public call for evidence signifies a determined effort to shed light on these alleged practices, aiming to expose what he perceives as a pattern of behavior that undermines public trust. The unfolding drama surrounding these accusations raises serious questions about the ethical responsibilities of large technology firms, particularly those handling sensitive public data and contracts, and their methods for managing public perception in the face of criticism.
Palantir's Stock Faces Predicted Downfall Amid Technical Analysis
Beyond the ethical questions, Michael Burry has presented a robust technical analysis forecasting a substantial decline for Palantir Technologies Inc.'s stock. His assessment, shared recently, identifies a classic "Head & Shoulders" reversal pattern in PLTR's stock chart, a well-recognized indicator of an impending bearish trend. Based on this technical formation, Burry projects the stock could find its next significant support level around $80, with a potential ultimate "landing area" for the price plummeting to between $50 and $60. Considering that the stock was recently trading around $131.41, a fall to the $60 mark would imply a staggering 54.34% collapse. This detailed forecast is consistent with Burry's previously disclosed short position, where he secured options allowing him to sell PLTR at $50 in 2027, reinforcing his conviction in the stock's impending depreciation and his strategic positioning to benefit from such a downturn.
Burry's bearish financial outlook for Palantir is further contextualized by his broader critique of what he terms the "AI bubble," where he categorizes high-valuation tech companies, including Palantir, as potential "frauds of the modern era." He contends that the current elevated valuations of these companies are unsustainable, irrespective of their reported earnings or growth metrics, suggesting a disconnect between their market price and intrinsic value. This perspective pits his cautious, value-oriented investment philosophy against the more optimistic, growth-driven narratives often championed by tech companies and their proponents, like Palantir CEO Alex Karp. Karp has openly dismissed Burry's bearish views as "BatS—t Crazy," emphasizing Palantir's strong revenue growth. However, Burry maintains that the structural integrity of this so-called "AI bubble" is eroding, implying that a market correction is inevitable for companies with inflated valuations. This ongoing debate between Burry's skepticism and Karp's confidence highlights differing investment philosophies and market interpretations regarding the sustainability of current tech stock prices.