Burry vs. Karp: Who Will Be Right About Palantir Stock’s Next Move?

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].