Key Points
Investor Michael Burry, known for his "Big Short" bet, remains bearish on defense technology firm Palantir Technologies Inc. In a Substack post, Burry revealed he continues to hold long-term put options on Palantir. He stated he initiated the short position against the company starting in the fall of 2025. The investor's comments came as former President Donald Trump posted on Truth Social praising the stock, applauding the company's "strong combat capabilities and equipment."
Despite a public endorsement from former President Donald Trump that provided a lift to the share price, Michael Burry is maintaining his short position on Palantir Technologies Inc. The investor, famous for his role in "The Big Short," stated in a Substack post on Friday that he continues to hold long-term put options on the artificial intelligence software company. Burry indicated he began shorting the company in the fall of 2025 and has rolled over his positions multiple times. "I currently hold puts expiring June 17, 2027, with a $50 strike price, and puts expiring December 19, 2026, with a $100 strike price. I will not be selling these options today," Burry wrote. Burry's remarks followed a post by Trump on Truth Social on Friday that commended Palantir, helping the stock recover from its intraday lows. Nonetheless, the stock was still on track for a weekly decline of approximately 13%, with a cumulative drop of around 28% since the beginning of 2026. Trump wrote: "Palantir Technologies Inc. (PLTR) has proven to have strong combat capabilities and equipment. Just ask our enemies!!!" Palantir's Friday Trading The prominent investor stated that the stock has weakened since hitting a peak near $200 last year and remains "extremely overvalued." While acknowledging a potential short-term rebound, Burry believes the company's fundamental value is less than half of its current market capitalization. "Following an 18% drop in the stock over the past three days, Trump's post gave the price a boost. It might rally from here. The stock had already been sold off alongside other software stocks. As I've said before, I remain holding puts because I believe the company's fundamental value is well below $50 per share," he said. Palantir's stock was trading around $127 per share on Friday. Some view Palantir as a beneficiary of potential conflict with Iran, as the software and services provider conducts significant business with the U.S. military and intelligence agencies. During Trump's second term, the company has continued to secure new government contracts and deepen its collaboration with the Pentagon; meanwhile, CEO Alex Karp has maintained regular contact with the administration despite previous tensions. Last year, Burry's former hedge fund, Scion Asset Management, disclosed short positions against both Palantir and the popular AI stock Nvidia, prompting a strong reaction from Karp, who called Burry's bet "extremely bizarre" and "completely insane."
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