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Palantir Slides 25% From Record High as CEO Blasts Short Sellers

Investors are reassessing the high‑priced AI favorite after Michael Burry revealed large put options.

Overview

  • Palantir shares have fallen about 25% since reaching an early‑November peak, reversing part of a powerful 2025 rally.
  • Michael Burry’s latest 13F showed roughly 66% of his $1.4 billion portfolio in put options against Palantir, highlighting a sizable bearish bet.
  • CEO Alex Karp told CNBC that heavy short interest amounts to market manipulation, pushing back at critics who question the stock rather than the software.
  • Operational momentum remains strong, with third‑quarter revenue around $1.18 billion up roughly 63% year over year, record bookings, and full‑year guidance raised to about $4.4 billion on AIP adoption.
  • Valuation concerns persist, including a P/E above 380 and a price‑to‑sales multiple viewed as the richest in the S&P 500, prompting some investors to favor diversified AI exposure such as Microsoft.