Palantir Shares Under Pressure from High-Profile Short Seller

Palantir US69608A1088

Despite posting record-breaking operational results, Palantir Technologies Inc. is struggling to find a floor for its share price. The source of this market anxiety is a prominent figure: investor Michael Burry, famed for his "Big Short" bet. He has significantly escalated his public criticism of the company's leadership and is betting on a substantial decline, even as the firm secures new government contracts and reports robust revenue growth.

The situation surrounding Palantir stock is evolving into a clash between influential short-sellers and major institutional investors. Since the start of the year, the equity has lost approximately 24 percent of its value, currently trading around 109 euros. However, this very level is attracting heavyweight buyers. Norges Bank recently reported establishing a massive stake valued at $5.15 billion.

Two distinct camps are now clearly defined. On one side is Burry's wager against the corporate governance. On the other is the confidence of institutional investors, who are focusing on Palantir's strong operational growth and its strategic importance within the defense sector.

Burry Intensifies Criticism and Short Position

Michael Burry, who initially disclosed a short position against the data analytics firm in November 2025, intensified his attacks via the platform X on Sunday. He accuses the leadership team under CEO Alex Karp of conducting "covert smear campaigns" and has publicly demanded proof of management's integrity.

To support his thesis, which forecasts a further downside potential for the stock of over 40 percent, the hedge fund manager points to reports from 2017 and 2024. These reports detail controversial marketing practices related to patient data from the UK's National Health Service (NHS) and interactions with the New York Police Department. This media offensive pushed the share price down by 1.5 percent in pre-market trading on Tuesday.

Strong Fundamentals Contrast with Market Bets

While Burry bets against the company, the operational figures tell a different story. In the fourth quarter of 2025, Palantir achieved a year-over-year revenue increase of an impressive 70 percent, reaching $1.41 billion. Simultaneously, it expanded its adjusted operating margins by 12 percentage points.

Furthermore, the company's order book continues to grow. Despite the market headwinds, Palantir secured a new contract with the Australian Department of Defence on Tuesday. The deal, worth $7.6 million, involves providing a platform for cyber warfare and follows a crucial authorization from U.S. defense authorities.