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Michael Burry Issues Bearish Warning on Palantir Technologies Market Capitalization

Michael Burry renewed a bearish case against Palantir Technologies on September 2, arguing that the company's current market capitalization of roughly $432 billion could eventually fall below $100 billion. Burry noted that Palantir behaves more like a consulting business than a true software company, citing a deferred revenue-to-revenue ratio of approximately 32%, which is nearly identical to consulting giant Accenture's 31%. This figure is significantly lower than the 80–207% range typical of pure software-as-a-service peers like Salesforce and ServiceNow. Despite Burry's critique, Palantir Technologies reported strong quarterly results, including revenue growth of 93% year-over-year. The company also raised its full-year guidance, projecting continued growth well above most software companies. While Burry highlighted governance issues such as a canceled share buyback program and high private jet expenses for CEO Alex Karp, the stock has largely maintained its upward momentum. Investors responded positively to new AI partnerships with PwC US and the Army's award of a prime contract for TITAN ground station systems.

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