Michael Burry pulls back on massive Palantir short bet
Michael Burry pulls back on massive Palantir short bet
Aditya RaghunathSat, June 27, 2026 at 11:03 PM UTC
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CEO of Palantir Alex Karp is bullish on long-term growthFabrice COFFRINI &sol Getty Images&rpar
Michael Burry is not a name the market ignores.
The investor behind the "Big Short" trade that predicted the 2008 financial crisis has made his bearish stance on Palantir Technologies one of the more talked-about positions on Wall Street. Now, something has shifted.
According to GuruFocus:
Burry's latest disclosures show that he has halved his short position in Palantir.
He also picked up long-dated call options expiring in December 2028, increased his stakes in companies like JD.com, Adobe, and Fiserv, and exited his Alibaba position entirely.
Taken together, the moves suggest he is rotating rather than just retreating.
Burry's long war with Palantir CEO Alex Karp
Back in November 2025, Scion Asset Management, the fund Burry runs, disclosed put options with a notional value of around $912 million against Palantir, according to CNBC.
Palantir CEO, Alex Karp went on CNBC's Squawk Box and called the move "bats--- crazy," saying Burry was essentially "putting a short on AI."
Burry did not back down. In April 2026, he published a post on Substack confirming he was still holding put options on Palantir, including June 2027 contracts with a $50 strike price and December 2026 contracts with a $100 strike price.
He called the stock "wildly overvalued" and said its fundamental value was well under $50 per share, per CNBC.
In April 2026, PLTR stock was trading around $130 per share. Today, it trades at $112, which is 45% below all-time highs.
However, valued at a market cap of $308 billion, Palantir stock has returned 700% over the past three years.
Palantir's Q1 numbers are impressive
Whether Burry's retreat reflects new conviction or simply profit-taking, the financials suggest it is getting harder to argue against what Palantir is building.
The company reported first-quarter 2026 revenue of $1.633 billion, up 85% year over year (YoY) and 16% sequentially, its highest reported growth rate as a public company.
United States revenue crossed the triple-digit threshold for the first time, growing 104% YoY to $1.282 billion.
Its gross profit margin improved to 86.8% in Q1 2026, up from 78.9% a year earlier.
Operating margin climbed to 46.2%, more than double the 19.9% from a year ago.
On the balance sheet, Palantir ended Q1 with $8 billion in cash, cash equivalents, and short-term U.S. Treasury securities, and total assets of $10.2 billion.
Related: Palantir stock faces hidden AI risk after Google deal
Total liabilities stood at just $1.6 billion, and the company carries no long-term debt.
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Palantir also raised its full-year 2026 revenue guidance to a midpoint of $7.656 billion, implying 71% growth, and lifted its U.S. commercial revenue guidance to at least $3.224 billion, representing 120% growth.
What Burry's retreat means for Palantir stock
Analysts tracking Palantir stock forecast revenue to increase from $4.48 billion in 2025 to $38.28 billion in 2030. In this period, adjusted earnings per share are projected to expand from $0.75 to $8.56.
If PLTR stock is priced at 30x forward earnings, below its current multiple of 72, it could more than double within the next four years.
Out of the 21 analysts covering PLTR stock, 13 recommend “Buy”, six recommend “Hold”, and two recommend “Sell”. The average Palantir stock price target is $185, indicating 73% upside potential.
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Burry has not abandoned his skepticism entirely. The partial pullback still leaves him with exposure against the stock, and his April comments made clear he was not ruling out a near-term rally even while holding puts.
But his decision to cut the position in half is notable. When someone with Burry's track record and conviction starts trimming a trade, the market tends to pay attention.
For investors watching Palantir, the story is getting clearer. The fundamentals are strong, customer count is growing,
U.S. government business is expanding, and the commercial segment is accelerating at a pace few enterprise software companies have achieved.
The Rule of 40 score, a metric that combines revenue growth and operating margin, reached 145% in Q1 2026, up from 127% the prior quarter.
Palantir's Chief Revenue Office, Ryan Taylor, stated:
"Our Rule of 40 score climbed to 145%, up from 127% last quarter on absolute AIP dominance. AIP is the only platform that establishes a true AI no slop zone, a necessary requisite to converting potential AI leverage into compounding real-world value without risking enterprise disaster."
Even one of its fiercest critics is stepping back. That tells its own story.
Related: Top analyst calls Palantir too big to ignore, resets rating
This story was originally published by TheStreet on Jun 27, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
Source: “AOL Money”
