Palantir Technologies Tumbles as Big Short Takes Aim

Palantir Technologies ( (PLTR) ) has fallen by -13.43%. Read on to learn why.

Palantir Technologies shares fell 13.43% over the past week as a wave of negative sentiment around rising AI competition and high valuation overpowered sporadic rebounds driven by political support. The slide accelerated after “Big Short” investor Michael Burry doubled down on his long‑dated put options against the stock and publicly argued that Palantir is “wildly overvalued,” saying its fair value is far below the current price. His comments, especially the claim that fast‑growing AI startup Anthropic is “eating Palantir’s lunch,” rattled investors and added to a broader sell‑off in software and AI names.

At the same time, Palantir Technologies remained in the political spotlight. President Donald Trump twice praised the company’s “great war fighting capabilities and equipment” on Truth Social, highlighting its deep ties to the U.S. military and intelligence community and nearly $900 million in Pentagon work last year. Those endorsements briefly helped the stock recover some intraday losses and reinforced the bullish narrative that Palantir could be a key winner from rising geopolitical tensions and further integration of its Maven battlefield software into long‑term U.S. defense programs, but the bounce was not enough to offset the week’s overall decline.

Despite the recent drop and year‑to‑date losses of around 28%, Wall Street remains broadly constructive on Palantir Technologies. Analysts generally see Burry’s warnings and Anthropic’s rapid growth as a competitive headwind but not a fundamental threat, noting that Palantir continues to post strong growth in its U.S. commercial and government businesses and benefits from a data and ontology “moat.” The stock carries a Moderate Buy consensus, with multiple analysts, including Wedbush’s Dan Ives, reiterating bullish calls and price targets that imply roughly 50% or more upside from current levels; upcoming Q1 FY26 earnings will be a key test of whether the latest pullback is a buying opportunity or a sign of deeper pressure on the AI specialist.