Benzingaยท2025-11-04 15:51Core Viewpoint - Palantir Technologies' CEO Alex Karp criticized short-sellers, particularly targeting investor Michael Burry, highlighting the irrationality of betting against profitable companies in the AI sector [1][2][3]. Group 1: Short-Selling Activity - Michael Burry's hedge fund, Scion Asset Management, held put options valued at approximately $912 million against Palantir and about $187 million against Nvidia as of September 30 [2]. - Karp described the behavior of short-sellers as "egregious" and expressed confidence that their positions would be proven wrong [3]. Group 2: Market Reaction - Despite Palantir outperforming Wall Street expectations for the third quarter and providing positive guidance, its stock fell by 7% on the day of Karp's comments [4]. - Nvidia's shares also experienced a decline of nearly 2% on the same day [4]. Group 3: Burry's Market Commentary - Burry previously warned about potential market bubbles, suggesting that sometimes "the only winning move is not to play" [5]. - He referenced an AI bubble in a post on X, indicating skepticism about the current market dynamics [5]. Group 4: Comparative Analysis - Burry shared charts comparing the cloud segment growth of major tech companies from 2018 to 2022 with the current period, as well as AI capital expenditures matching those of the 1999-2000 tech bubble [6].