Palantir Stock Plunges 7.5% as Investors Fear It’s Overvalued
Michael Burry—the famed investor portrayed in The Big Short—has reportedly taken short positions against Palantir and Nvidia.
Quick overview
- Palantir Technologies' shares dropped over 7.5% on Wall Street, raising concerns about its valuation despite strong third-quarter results.
- The decline marks the company's worst single-day drop since October 3, potentially erasing around $33 billion in market capitalization.
- Market anxiety is heightened by warnings from CEOs of major banks about a potential 10%–15% correction in equity markets.
- Investor Michael Burry has taken short positions against Palantir and Nvidia, adding to fears of a market bubble in the AI sector.
Shares of Palantir Technologies, the data analytics software firm, tumbled more than 7.5% on Wall Street after analysts raised doubts about whether its performance and growth outlook justify its lofty valuation.
The stock is facing its worst single-day drop since October 3, when it fell 7.47%, potentially wiping out around $33 billion in market capitalization.
The decline comes despite Palantir reporting stronger-than-expected third-quarter results and raising its guidance for the fourth quarter, attributing much of its momentum to artificial intelligence initiatives.
Adding to market jitters, the CEOs of Morgan Stanley and Goldman Sachs warned that equity markets could be heading for a 10%–15% correction, highlighting growing anxiety over the inflated valuations of AI-driven companies like Palantir.
Meanwhile, Michael Burry—the famed investor portrayed in The Big Short—has reportedly taken short positions against Palantir and Nvidia, according to filings submitted to regulators on Monday.
Late last month, Burry broke a two-year silence on X (formerly Twitter) to warn of an ongoing market bubble, fueling investor fears of excessive spending across the AI and tech sectors.
Whether Burry has once again timed the market perfectly—or if Palantir’s decline proves to be just a temporary breather before another rally—remains to be seen. The stock is still up over 170% year-to-date, far outpacing most major tech names, including those in the so-called “Magnificent Seven.”
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