Palantir stock erases $42 billion from its market cap one day after Michael Burry bet against it

Core Insights - Palantir shares experienced a significant decline of nearly 8% on November 4, following a record high of $207.18, attributed to valuation concerns raised by analysts [1] - Investor Michael Burry disclosed a $912 million bearish bet against Palantir, leading to a loss of approximately $42 billion in market capitalization within a day [2] - Despite the stock's decline, Palantir's CEO Alex Karp remains optimistic about the company's performance and criticized short sellers [5] Company Performance - Palantir reported strong third-quarter earnings, with a revenue beat of 8% and guidance indicating continued growth [7] - The company has achieved its ninth consecutive quarter of accelerating growth, which has led to several Wall Street upgrades [7] - DA Davidson raised its price target for Palantir to $215, while Goldman Sachs and Baird also increased their targets to $188 and $200, respectively, citing strong demand for AI solutions as a growth catalyst [6][7] Market Reaction - Following Burry's bearish stance, Palantir's market cap fell from approximately $489 billion to around $447 billion in just one day [2] - The stock continued to decline in pre-market trading, dropping another 2.37% to $185.90 [3] - Karp suggested that the negative sentiment may be influenced by potential market manipulation [5]