Legendary skeptic delivers 6-word verdict on Palantir’s hot streak

Core Viewpoint - Palantir Technologies (PLTR) is experiencing significant momentum in the artificial intelligence sector, but Michael Burry's critique raises concerns about its valuation relative to business fundamentals [1][2][3]. Group 1: Michael Burry's Critique - Burry's analysis titled "Palantir's New Clothes: Foundry, AIP & the Failure of Reason" is drawing attention to the discrepancies in Palantir's valuation and its underlying business performance [2]. - He emphasizes that his critique is not personal, indicating a focus on the company's financials rather than its leadership style [3]. - Burry warns investors that the AI narrative surrounding Palantir may be obscuring a proper valuation assessment [4]. Group 2: Valuation Estimates - Burry suggests a "fair value" estimate of $46 per share for Palantir, based on an analysis of its fundamentals, which he claims have significantly declined since its peak in 2024 and 2025 [5][6]. - He presents a range of valuation scenarios from $21 to $146, clarifying that these are not conventional Wall Street price targets [7]. - Although Burry is not shorting Palantir outright, he holds put options, indicating a bearish stance on the stock [7]. Group 3: Company Culture and Leadership - Burry critiques Palantir's culture and leadership, arguing that the stock's performance is driven more by the leadership's aura than by fundamental financial metrics [8]. - He references Michael Steinberger's book, highlighting internal tensions within the company as expressed by CEO Alex Karp [9].