Palantir (PLTR) stock fell sharply in today’s trading after comments from well-known investor Michael Burry raised concerns about its position in the AI market. In a post on X, Burry said that AI startup Anthropic is “eating Palantir’s lunch,” which implies that it is gaining market share quickly. It is also worth noting that Burry has been skeptical about the AI boom overall and has previously taken a bearish view on Palantir.
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The reasoning behind his comments comes down to how AI is being adopted by businesses. According to Burry, Anthropic’s tools are simpler, cheaper, and easier for companies to use compared to Palantir’s more complex systems. As a result, many businesses may prefer these “plug-and-play” solutions that can be implemented quickly.
At the same time, Anthropic has been growing fast, with its recurring revenue increasing significantly in a short period, which shows that demand is shifting toward these types of platforms. And while Palantir still has strong government contracts, Burry believes that the biggest growth opportunities are in the private sector, where competition is becoming more intense. Therefore, if companies like Anthropic continue to grow quickly, it could put pressure on Palantir’s future growth.
Is PLTR Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PLTR stock based on 14 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $194.61 per share implies 50.8% upside potential.
