Palantir at the AGM Crossroads: Founder Control Meets a Bearish Crusade

Palantir stock falls 6.7% amid AGM and renewed short from Michael Burry, who calls it a 'sandcastle' propped by AI hype. Founders' super-voting shares ensure board proposals pass.

Wednesday brought a double dose of drama for Palantir shareholders. The stock shed 6.7 percent to close at 122.26 euros in Frankfurt, marking its third straight daily decline, as the company’s annual general meeting got underway. While directors were being elected and controversial shareholder proposals debated, the ghost of the 2008 crash resurfaced: Michael Burry disclosed he had renewed his short position, calling the stock a “sandcastle” propped up by AI euphoria.

Seven Directors, One Voting Bloc

The board put forward seven nominees for election, including chief executive Alexander Karp and co-founder Peter Thiel. Four of the seven are classified as independent. Ernst & Young is again proposed as auditor. Management recommends a vote in favor of all board proposals — and against the three shareholder initiatives that have drawn the sharpest scrutiny.

Those initiatives strike at the heart of Palantir’s defense-focused business model. One demands an independent report on due diligence procedures for military products, specifically regarding human rights abuses in conflict zones. Another calls for a company-wide human rights impact assessment. A third seeks regular disclosure of political spending. The board dismisses them all, arguing in its voting statement that the human rights motions are based on “misunderstandings and inaccuracies,” would strain customer relationships, and create unnecessary costs.

The outcome is not in doubt. Palantir’s dual-class structure concentrates power around the founders. Class A shares — roughly 2.3 billion of them — carry one vote each. Class B shares have ten votes, and the million-odd Class F shares boast more than 1,260 votes apiece. Together, the founders control over 1.27 billion votes, enough to swat down any activist resolution. For holders of ordinary Class A stock, the meeting is largely symbolic.

Burry Piles On

The governance dust-up landed in the middle of an already turbulent week for the stock. Before Wednesday’s 6.7 percent slide, shares had fallen 5.3 percent on Tuesday and another 2 percent in pre-market trading on Wednesday. Burry’s Substack post, which identified a head-and-shoulders pattern on the chart and argued the stock trades at sixteen times its intrinsic value, added fuel.

Burry first built his short position in autumn 2025 and has since repeatedly extended it. He currently holds put options expiring in December 2026 and June 2027, with strike prices of $100 and $50 respectively. His message was blunt: “I am not selling these today.”

Wall Street remains largely unmoved. Of 31 analysts covering the stock, 19 rate it a buy, 10 a hold, and only two a sell. The consensus price target of $183.73 implies roughly 21 percent upside from the last close. The gap between Burry’s conviction and the Street’s optimism is now a central theme for the stock.

Insider Exodus and a UK Headache

Burry’s attack lands at a sensitive time. Over the past three months, insiders have sold $422.5 million worth of shares. Most recently, a director unloaded a substantial block, following larger disposals by other executives earlier in the year.

Regulatory clouds are also forming across the Atlantic. Britain’s Financial Conduct Authority is reviewing its existing contract with Palantir amid concerns that sensitive UK financial data could become accessible to US authorities. Separately, the Mayor of London blocked a planned agreement with the Metropolitan Police. For a company that relies heavily on government contracts, the UK pushback is no fringe issue.

Growth at a Price

None of this diminishes Palantir’s operating performance. First-quarter revenue jumped 85 percent year on year to $1.63 billion, gross margin improved to 87 percent, and operating cash flow reached $899 million. US commercial revenue accelerated 133 percent. The company lifted its full-year guidance to a range of $7.65 to $7.66 billion.

Yet the stock has fallen roughly 14 percent since the start of 2026, while the S&P 500 has gained over 11 percent. The trailing price-to-earnings ratio of around 160 — or 171 on some measures — leaves no margin for error. The share price now sits about 11 percent below its 200-day moving average and more than 30 percent below the 52-week high of 179.98 euros.

The AGM will conclude with the founders’ slate approved and the shareholder motions defeated. Management will take the result as a mandate. For the stock, the next test is whether the US commercial growth engine can keep firing at a pace that justifies a multiple most investors still find breathtaking.