Key insights
- Michael Burry has expressed strong bearish sentiment on Palantir Technologies, calling its stock a 'sand castle' propped up by the AI narrative. He cited technical chart patterns suggesting waning bullish psychology and anticipates further near-term stock price declines, despite a broader AI rally. This critical view from a prominent investor could weigh on sentiment for PLTR and potentially other AI-focused stocks if the narrative falters.
https://www.ibtimes.co.uk/michael-burry-criticises-palantir-ai-financial-practices-1800528
Days after detailing how Elon Musk's deal with Nvidia, supported by a $3.5 billion debt from Apollo, is putting the retirement funds of Americans at risk, The Big Short's Michael Burry came down heavily on Palantir Technologies again.
Palantir shares fell 5.2% on Tuesday and another 1.7% during premarket hours on Wednesday despite global equity indexes rising amid the AI rally. Burry believes the stock price could fall further in the near term. 'It is a sand castle, supported for now by the AI applications narrative,' he wrote on Substack.
He highlighted the 'head-and-shoulders' type pattern on Palantir's stock chart, reflecting the 'waxing and waning of extremely bullish psychology.'