Investor Michael Burry has confirmed his ongoing short bets against Palantir Technologies, holding put options expiring in 2026 and 2027. He initiated these positions last year and stated he has no plans to sell them currently.
This stance persists despite recent praise from former President Donald Trump, who highlighted the company’s strengths in military technology during discussions of conflicts in the Middle East. Trump noted on his social media that Palantir demonstrates strong capabilities in warfare, as evidenced by its impact on adversaries.
Palantir, a data analysis firm co-founded by investor Peter Thiel—a known supporter of Trump—reported $1.2 billion in revenue from U.S. government contracts in its latest quarterly results for 2024.
Burry recently suggested that rival firm Anthropic is gaining ground in the enterprise AI sector, potentially securing about 73% of new spending in that area. He also criticized Palantir’s dependence on government deals, which often yield slimmer profits than commercial contracts. Although Burry removed the post, it has already influenced market sentiment.
Palantir’s shares are valued at multiples ranging from 100 to 235 times earnings, significantly higher than the industry average of around 20 times. The stock has dropped over 16% in the past month.
Amid speculation that the AI sector might be an overhyped bubble, investor Howard Marks acknowledged the technology’s genuine potential for productivity. However, he expressed uncertainty about its investment returns.
In a note to clients, Marks indicated that while AI’s business implications remain unclear, enthusiasm for related companies is high. He predicted that the profitability of these investments would become evident in about a decade.
Marks, co-founder of Oaktree Capital Management, observed that major tech firms involved in AI might be reasonably priced, given their strong earnings. He questioned whether current infrastructure investments in AI are excessive, noting that demand currently outstrips supply but could shift if building accelerates or growth slows.
He emphasized that AI’s capabilities are likely underappreciated rather than exaggerated, though this does not guarantee attractive investment valuations. Marks cautioned against overcommitting to AI without recognizing the potential for significant losses if developments falter.
