Michael Burry Doubles Down on Palantir Short as Stock Tumbles 28% in 2026

Michael Burry maintains massive Palantir short despite Trump boost, citing Anthropic's growth and Palantir's 142x earnings multiple as key risks.

By: AXL Media

Published: Apr 11, 2026, 7:08 AM EDT

Source: Information for this report was sourced from Quartz and TradingView

The Persistent Bear Case Amid Political Tailwinds

Michael Burry, the head of Scion Asset Management, remains committed to a massive short position against Palantir Technologies even as the "Trump bump" briefly lifted the stock from its recent lows. In a detailed Substack post published on April 10, 2026, Burry revealed that he has no intention of closing his positions, which include $50-strike puts expiring in June 2027 and $100-strike puts expiring in December 2026. While President Trump praised the company on Truth Social for its "great warfighting capabilities," Burry characterized the resulting intraday recovery as temporary, arguing that the market is finally beginning to align with his long-held view that the stock is "wildly overvalued."

Valuation Gaps and the Services Firm Narrative

Central to Burry’s thesis is the claim that Palantir’s fundamental value is roughly 60% lower than its current trading price of approximately $127. He has repeatedly criticized the company's business model, arguing that it functions more like a professional services consultancy than a scalable technology product firm. By embedding engineers directly at client sites for years at a time, Burry suggests Palantir lacks the high-margin, "deploy-and-forget" nature of traditional software-as-a-service (SaaS) leaders. Even after a significant retreat from its 2025 high of $200, Palantir still carries a price-to-earnings multiple of 142, the third-highest in the S&P 500, leaving it vulnerable to further contraction.

Anthropic as the Emerging Enterprise AI Threat

Confidence in Palantir’s commercial growth has been further shaken by Burry’s comparison of its revenue trajectory to that of Anthropic. In a recent analysis, Burry pointed to Anthropic’s ability to scale its Annual Recurring Revenue (ARR) from $9 billion to $30 billion in a matter of months, powered by its advanced Claude Mythos AI model. This pace of growth stands in stark contrast to Palantir’s timeline, which took two decades to reach $5 billion in revenue. Burry contends that enterprise spending is shifting toward more intuitive, cheaper AI tools offered by newer competitors, potentially capturing up to 73% of new spending in the sector at Palantir’s expense.