Former President Donald Trump posted on Truth Social on Friday, praising the artificial intelligence software firm Palantir Technologies Inc. (PLTR.US), providing a boost to the stock and helping it recover from its intraday lows. Despite this, the stock still recorded a 13.7% decline for the week, marking its worst weekly performance in nearly a year and bringing its year-to-date loss for 2026 to approximately 28%.
Even with Trump's public endorsement providing support, Michael Burry, the investor profiled in "The Big Short," maintained his short position against Palantir. "Palantir Technologies (PLTR) has proven its powerful operational capabilities and equipment," Trump wrote on the social media platform, adding, "Just ask our enemies!!!" Reports indicate the U.S. military is utilizing Palantir's AI-driven Maven Smart System platform to identify targets in the Middle East, related to airstrikes against Iran that began in late February.
Over half of Palantir's U.S. revenue comes from government entities, including the Pentagon and Immigration and Customs Enforcement. For years, CEO Alex Karp has been a vocal supporter of the U.S. military, committed to equipping personnel with the best tools. Although Karp has previously criticized Trump and donated to President Joe Biden's campaign, he now expresses support for the new administration and its policies. Karp frequently defends Palantir against criticism for providing tools used in the surveillance of immigrants and U.S. citizens. He previously told media that his public support for Israel following the October 7th Hamas attack led to some employee departures.
Last October, during an interview at an event hosted by The Information, Palantir's head of communications, Lisa Gordon, described the company's perceived political alignment with the Trump administration as "concerning." The video was promptly removed from The Information's YouTube and social media pages. The watchdog group Citizens for Responsibility and Ethics in Washington (CREW) stated in an email that Trump's post was unusual, noting that Palantir has sponsored events for the Trump administration and contributed to a White House banquet hall project. CREW suggested that Trump's inclusion of the stock ticker could be "an attempt to boost the share price of a major supporter, whose stock has been depressed for the past six months."
Palantir also has ties to AI lab Anthropic, which has faced scrutiny from the U.S. Department of Defense over concerns its tools could be used for autonomous weapons and government surveillance. Palantir uses models from Anthropic and other AI labs on its platform. Karp told media last month that Palantir would "phase out" Anthropic's models, but this has not yet occurred. This week, software stocks faced selling pressure after Anthropic released its new Mythos model with limitations, citing concerns about potential misuse by hackers. The AI industry has expressed growing concern in recent months that new AI tools could displace traditional software models.
Prominent short-seller Michael Burry has recently targeted Palantir's stock, among other AI companies. In a since-deleted post this week, Burry wrote that Anthropic is "eating Palantir's lunch." Following Trump's remarks on Friday, Burry commented again on the company. "Trump's post gave the stock a boost, after it fell 18% over the past three days. This stock might see a bounce," Burry wrote. "It has been falling along with software stocks. As I mentioned before, I remain short via puts, as I believe the fundamental value of this company is well below $50 per share."
Burry stated he continues to hold long-dated put options on the AI software company. He indicated he initiated the short position in the fall of 2025 and has rolled it over multiple times. After this week's sharp decline, the stock was trading around $126. "I currently hold puts expiring June 17, 2027, with a $50 strike, and puts expiring December 19, 2026, with a $100 strike. I am not selling these options today," Burry wrote. The well-known investor said the stock, which has weakened since nearing $200 last year, remains "significantly overvalued." While acknowledging a short-term rebound is possible, Burry believes the company's fundamental value is less than half its current price.
Last year, Burry's former hedge fund, Scion Asset Management, disclosed short positions in both Palantir and AI favorite Nvidia (NVDA.US), which prompted a strong reaction from Karp, who called Burry's bet "extremely weird" and "just insane." On Friday, Burry also revealed he increased his short position in Nvidia. "I added to my Nvidia puts, this time buying the Jan 27, $115 strike puts for $3.30. Implied volatility is high, so I considered shorting outright," he said. "However, I like capping the maximum loss, and time decay (theta) isn't very pronounced over two months. I would consider rolling early if necessary."
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