Michael Burry Says Palantir Is Worth $46. The Stock Trades at $130.

Core Viewpoint - Michael Burry values Palantir at $46, significantly lower than its current trading price of $130, suggesting a potential overvaluation in the market [1][2] Group 1: Burry's Position on Palantir - Burry has reported $912 million in puts against Palantir, indicating a strong bearish stance [1] - His analysis treats Palantir more like a consulting firm rather than a software-as-a-service (SaaS) company, leading to a lower valuation [1] - Burry's valuation range for Palantir is between $21 and $146, with $46 being a conservative estimate based on his analysis [1] Group 2: Market Valuation and Comparisons - Palantir currently trades at 98 times forward earnings, compared to an average of 19 times for software stocks and 30-40 times for hypergrowth stocks [1] - The market perceives Palantir as a SaaS company, which Burry argues is incorrect; he believes it should be valued more like a consulting firm [2] - If the market were to reclassify Palantir as a consulting firm, a valuation of $46 would be more justifiable [2] Group 3: Business Model Insights - Burry highlights that Palantir employs "forward-deployed engineers" who work on-site with clients, which complicates its classification as a pure SaaS model [1] - The costs associated with these engineers are atypically categorized, affecting the perceived gross margin of 82%, which would appear thinner if reclassified [1] - Burry's argument suggests that the market needs to recalibrate its understanding of Palantir's business model and revenue recognition practices [1]