Key Takeaways
- Famed investor Michael Burry acquired put options on Palantir expiring in March 2027, with strikes in the $100-$105 range—representing a significant downside bet from the stock’s current price near $173.
- CTO Shyam Sankar executed a $5.45 million stock sale on August 6 through a pre-established Rule 10b5-1 trading plan.
- The company’s second-quarter revenue surged to $1.94 billion, reflecting 94% annual growth and surpassing analyst projections of $1.81 billion.
- Burry’s skepticism revolves around excessive valuation metrics: PLTR currently trades at more than 50x projected 2026 revenues and approaches 100x free cash flow.
- Analyst consensus stands at Moderate Buy with a mean price target of $197.21, suggesting approximately 12.5% potential appreciation.
Michael Burry has re-entered the ring against Palantir, but this time with a longer timeline for his bearish thesis to play out. The “Big Short” investor recently revealed he purchased put options on PLTR expiring in March 2027, with strike prices clustered between the low and mid-$100 range, while shares hovered around $173 during Tuesday’s pre-market session.
Palantir Technologies Inc., PLTR
The gap between current prices and Burry’s strike targets is substantial. This isn’t a tactical bet on a modest correction—Burry appears convinced a significant downturn is coming within his two-year timeframe.
Burry shared details of this position through his Cassandra Unchained Substack newsletter. Notably, he had previously closed portions of an earlier bearish position around the $107 level. He timed this new entry when option premiums dropped to their lowest levels in months, securing more favorable pricing.
Year-to-date, PLTR has declined roughly 1.4%, though shares have rocketed more than 40% higher over just the past five trading sessions. Such dramatic price action inevitably attracts scrutiny from both optimists and skeptics.
Why Burry Sees Palantir as Overvalued
Burry’s bearish stance doesn’t stem from doubts about Palantir’s underlying operations. He has publicly recognized the company’s impressive expansion. Instead, his concern centers squarely on valuation.
In one of his recent commentaries, Burry drew a comparison between Palantir and traditional defense contractors including Northrop Grumman, General Dynamics, Lockheed Martin, and L3Harris. His argument: investors could purchase an entire portfolio of battle-tested defense giants for roughly what the market is currently valuing Palantir.
According to a bearish assessment from Stone Fox Capital, the stock currently commands more than 50 times anticipated 2026 revenues and approaches nearly 100 times free cash flow. Following a similar valuation peak in late 2025, Palantir experienced approximately a 50% drawdown. Burry seems to anticipate history repeating itself.
Executive’s $5.4M Stock Sale: Reading Between the Lines
On August 6, Palantir’s Chief Technology Officer Shyam Sankar divested 35,000 Class A shares, generating proceeds of $5.45 million. The transaction occurred at prices between $153.40 and $157.44 per share.
The critical context here is that this sale was conducted under a Rule 10b5-1 trading arrangement established on March 11—long before the recent price spike. Such plans allow executives to schedule transactions months ahead, insulating them from accusations of trading on material nonpublic information. Consequently, this sale doesn’t necessarily signal Sankar’s current sentiment about the company’s prospects.
Following the transaction, Sankar maintains direct ownership of 642,786 Class A shares, with an additional 599,899 shares held in trust.
According to TipRanks analysis, insiders have collectively sold $43.7 million worth of stock over the trailing three-month period. The platform has issued a Negative Insider Confidence Signal triggered by two informative transactions during this timeframe.
Palantir’s second-quarter financial results provided ammunition for optimistic investors. Revenue reached $1.94 billion, representing 94% year-over-year growth and exceeding Wall Street’s $1.81 billion projection. Adjusted earnings per share landed at $0.41, comfortably above the $0.34 consensus estimate.
Management provided guidance calling for approximately $2.16 billion in third-quarter revenue and roughly $8.15 billion for the full 2026 fiscal year.
Deutsche Bank analyst Brad Zelnick recently elevated his rating on PLTR from Hold to Buy while maintaining a $200 price target. Bank of America’s Mariana Perez Mora reaffirmed her Buy recommendation alongside a Street-high $255 target.
According to TipRanks’ aggregated analyst ratings, PLTR currently holds a Moderate Buy consensus rating with a mean price objective of $197.21.
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