Group 1: Michael Burry's Investment Strategy - Michael Burry is betting against AI stocks, specifically Nvidia (NVDA) and Palantir (PLTR), by purchasing put options in Q3 2025 [1] - Burry has suggested he closed his short position on Palantir, indicating a strategic shift in his investment approach [1] Group 2: Allegations Against Hyperscalers - Burry accuses hyperscalers of accounting fraud by understating depreciation, which he claims artificially boosts earnings [2] - He estimates that hyperscalers will understate depreciation by $176 billion from 2026 to 2028, with Oracle (ORCL) and Meta Platforms (META) overstating earnings by 26.9% and 20.8% respectively by 2028 [2] - Burry highlights that Alphabet (GOOG) has doubled the useful life of its network/compute assets to six years since 2020, allowing for a longer depreciation period and boosting near-term earnings [3] Group 3: Financial Implications for Hyperscalers - Hyperscalers are facing significant depreciation costs due to investments in AI infrastructure, which will impact their income statements [4] - The effect of higher depreciation is already evident in earnings, as profits are not growing as significantly relative to revenue compared to the previous two years [4] - Burry plans to release more details on his allegations on November 25, which may provoke responses from the companies involved [4]

Core Insights - Michael Burry accuses technology companies of inflating profits by extending the lifespans of their assets [3] - Burry has publicly disclosed his short positions in Nvidia (NVDA) and Palantir (PLTR) [3] Company Analysis - The accusation from Burry raises concerns about the accounting practices of major tech firms, potentially impacting investor confidence [3] - Nvidia and Palantir are specifically highlighted as companies that may be affected by these allegations, which could influence their stock performance [3]

Core Viewpoint - Palantir's stock has experienced significant growth, with a tripling in value over the past year and an increase of over 860% in the last two years, driven by strong demand for AI solutions [4][5]. However, concerns are rising about the sustainability of this growth amid discussions of an AI bubble [3][4]. Group 1: Stock Performance - Palantir's stock has gained more than 860% over the past two years, reflecting robust AI demand [5]. - The stock has more than tripled in the past year, creating substantial wealth for retail investors [4]. Group 2: Market Sentiment - There is increasing chatter about an AI bubble, suggesting that future performance may require more than just strong earnings reports [3][4]. - Legendary investor Dr. Michael Burry has purchased significant put options against Palantir, indicating a bearish outlook, while CEO Alex Karp has dismissed this bet as "crazy" [5][6]. Group 3: Analyst Opinions - Wedbush analyst Dan Ives believes that Burry is mistaken and sees further upside potential for Palantir despite its elevated valuation [5][6]. - While concerns about valuation and market enthusiasm are valid, timing a potential correction is challenging, and bearish bets may not yield profits if the downturn does not occur in a timely manner [6][7].

Group 1 - Michael Burry is betting against major AI companies, claiming they are underreporting depreciation on aging compute infrastructure, potentially overstating earnings by $176 billion from 2026 to 2028 [1] - Burry's short positions include put options on Nvidia and Palantir Technologies, with Oracle and Meta identified as significant offenders in earnings overstatement [1] - Growth stocks have seen a sharp pullback, while value stocks and mega-cap companies have remained stable, indicating a narrowing leadership in the market [2][4] Group 2 - The earnings season is winding down, with Nvidia's upcoming report being crucial for assessing AI momentum and datacenter demand [5] - If Nvidia reports strong results, it may undermine Burry's position, but any signs of soft guidance or inventory buildup could support his concerns about inflated AI optimism [8]

Core Viewpoint - Palantir's shares have experienced significant growth in recent years, showcasing a strong performance that seems to defy market trends [1] Group 1 - The company's stock has been described as "scorching hot," indicating a high level of investor interest and confidence [1] - Palantir continues to demonstrate resilience in its stock performance, suggesting robust underlying business fundamentals [1]

Core Insights - The collaboration between Palantir Technologies and Surf Air Mobility aims to leverage AI for advancements in regional electric aircraft travel [1][2] - Palantir has seen significant stock performance, with a 145% increase this year and a market capitalization of approximately $453 billion [4] Company Overview - Palantir Technologies is a data mining company known for its Gotham and Foundry platforms, which provide real-time analytics and data sorting capabilities [2] - The company has transitioned from a government contractor to serving commercial businesses, focusing on supply chain management and predictive analysis [3] Financial Performance - In Q3, Palantir reported earnings of $1.18 billion, reflecting a 63% year-over-year increase, with U.S. commercial revenue rising 121% to $397 million [4] - U.S. government revenue reached $486 million, marking a 52% increase from the previous year [4] Valuation Concerns - Palantir's valuation metrics are notably high, with a price-to-earnings (P/E) ratio of 569 and a forward P/E of 345, alongside a price-to-sales (P/S) ratio of 160 [5] - CEO Alex Karp acknowledges the challenges in appraising the company's significance and financial value, emphasizing its potential for retail investors [5]

Core Insights - Michael Burry, known for his role in "The Big Short," has expressed significant concern regarding his bearish positions in NVIDIA Corp. and Palantir Technologies, indicating potential financial distress from these investments [1][3][5]. Company Positions - Burry's firm, Scion Asset Management, has acquired 5 million put options on Palantir and 1 million put options on NVIDIA during the third quarter, suggesting a strong bearish outlook on both companies [5]. - The recent social media post implies that Burry is still holding these options, which are likely to be significantly underwater, indicating a challenging investment situation [6]. Market Sentiment - Burry's social media activity has become more transparent, reflecting his current frustrations and the stress associated with his investment strategy, reminiscent of his past experiences during the housing market crash [3][4].

Group 1 - Dow Jones futures rose slightly overnight, alongside S&P 500 and Nasdaq futures, indicating a positive market sentiment [2] - The Dow Jones achieved a record close, reflecting strong performance in the stock market [2] - Eli Lilly (LLY) reached a new high, showcasing its growth potential in the current market [2][5] Group 2 - Palantir (PLTR) remains in a buy zone, suggesting continued investor interest and potential for growth [2] - The market showed mixed but positive action, with notable focus on companies like Deutsche Bank and Nebius [5] - Nebius reported a larger Q3 net income loss and announced a deal with Meta AI, leading to a decline in its shares [5]

Key Points Palantir's business is booming as private-sector clients adopt its AI-boosted data analytics tools and more federal agencies climb aboard. The stock's valuation is extremely high. 10 stocks we like better than Palantir Technologies › As famed economist John Maynard Keynes once said, "Markets can remain irrational longer than you can remain solvent." And few stocks exemplify this axiom better than Palantir Technologies (NASDAQ: PLTR). Shares of this AI-associated data analytics company ha ...

Palantir (PLTR) is holding nicely above rising 21, 50 and 200-day moving averages and is a highly rated stock among many analysts. Today, we are looking at an unbalanced iron condor, with a slightly bullish bias. More News from Barchart This can be achieved by trading more put spreads than call spreads. As a reminder, an iron condor is a combination of a bull put spread and a bear call spread. First, we take the bull put spreads. Using the December 19 expiry, we could sell two put spreads with the $16 ...