Michael Burry is maintaining his bearish stance on Palantir Technologies, despite a recent endorsement from former President Donald Trump that temporarily boosted the stock. In a Substack post, Burry confirmed he holds long-dated put options, specifically June 2027 and December 2026 strike price puts, asserting that he believes the stock is still “wildly overvalued.” This comes as Palantir’s shares are on track for a 13% weekly decline, reflecting a 28% drop since the beginning of 2026.
Burry’s skepticism is rooted in the stock’s significant decline from its peak near $200 last year, and he argues that its fundamental value is less than half of its current trading price around $127. While Trump’s comments provided a short-term rally, Burry suggests that the stock’s recent performance aligns with broader sell-offs in the software sector.
For market professionals, Burry’s position underscores the ongoing volatility in tech stocks, particularly those tied to government contracts. Investors should closely monitor Palantir’s performance against macroeconomic trends and sector dynamics, especially as geopolitical factors may influence its valuation.
Source: cnbc.com