The legendary ‘Big Short’ trader Michael Burry revealed on Monday, August 10, that he has once again taken a short position against Palantir (NASDAQ: PLTR), estimating the equity’s intrinsic value is below $1 in the long run.
Considering PLTR shares stood at $175.23 at the latest close, the famous investor effectively predicted a long-term collapse of 99.44%.
Simultaneously, the legendary bear noted that the software giant is again trading at 69 times sales, while pointing out that the company’s off-balance-sheet non-cancellable infrastructure buy agreements have tripled in 2026, creating long-term structural risks.
Burry also reflected on Palantir’s recent issuing of $5 billion worth of shares to staff over the previous year and claims to have identified the widest accounting gap in his review of the technology behemoth. Notably, the ‘Big Short’ investor also stated he examined 66 firms in total for said accounting gaps.
Burry warns PLTR destined for $1 after Palantir stock soars 40% in a week
Notably, Michael Burry’s latest purchase of $100 PLTR stock March 2027 put options reinforced his increasingly contrarian stance given that Palantir’s equity soared by roughly 40% since the start of August thanks to the company’s exceptionally strong earnings.
Still, the ‘Big Short’ trader arguably elected to reenter his bet against the software firm precisely thanks to its shares shooting up as the market move increased the potential gains from the bearish wager.
Burry’s also profited from his previous bet against Palantir, which he partially covered earlier this summer.
Michael Burry reinforces his AI short conviction
Elsewhere, the legendary investor has been steadily ramping up his wagers against the wider artificial intelligence (AI) ‘boom’ by not only retaining his short position against Nvidia (NASDAQ: NVDA), but also recently making bets against the cloud giant Oracle (NYSE: ORCL) and the neocloud Nebius (NASDAQ: NBIS).
Furthermore, Michael Burry also recently implied he views long investments in any major stocks as ill-advised by remarking that Berkshire Hathaway (NYSE: BRK.A, BRK.B) is no longer a worthwhile stock to own after the company decided to translate some of its vast cash pile into new equity positions.
