Michael Burry Responds to Palantir CEO Criticism of His Investment
Michael Burry, famed investor and the figure behind “The Big Short,” has responded to criticism from Palantir CEO Alex Karp. This exchange occurred after Karp labeled Burry’s investment strategies as “batshit crazy” during a recent interview.
Michael Burry’s Investment Strategy
In a post on X, Burry countered Karp, suggesting that Palantir’s inability to interpret basic financial information reflects a deeper issue. He emphasized the importance of having a complete information set for valid conclusions in data science and philosophy.
Recent Investment Moves
Burry’s Scion Asset Management disclosed a significant position last week. As of September 30, the firm owned bearish put options on 5 million shares of Palantir, totaling a notional value of $912 million. Additionally, Scion held puts on 1 million shares of Nvidia, worth approximately $187 million.
Impact on Palantir’s Stock
This news coincided with Palantir’s third-quarter earnings report. Following the disclosure, Palantir’s stock dropped 15% from a peak of $207 to $175 over three days, ultimately closing the week at $178.
Alex Karp’s Response
In an interview with CNBC, Karp directly criticized Burry and others who are shorting Palantir. He claimed that the two companies Burry targeted are financially thriving. Karp described Burry’s actions as perplexing and labeled them “batshit crazy.”
Company Performance
- Palantir’s revenue grew by 63% year-on-year, reaching approximately $1.2 billion in the last quarter.
- The company’s net income increased to $477 million, more than tripling compared to previous periods.
- Full-year revenue is projected to rise about 54% to $4.4 billion.
- Palantir’s stock has increased nearly 28-fold this year, rising from around $6 to $178 per share.
- The company has achieved a market capitalization of $422 billion, surpassing notable firms like Costco and Bank of America.
Burry’s Current Position
Burry has signaled a possible change in his stance regarding Palantir. Following the latest filing, he posted on X, hinting that he may no longer hold a short position against the company. He also teased upcoming insights into his investment thinking, originally slated for December, now moved to November 25.
Both Scion Asset Management and Palantir did not respond to requests for comments regarding this ongoing debate. Burry’s insights, shared through X, hint at his skepticism about the current AI bubble and echo concerns reminiscent of the dot-com boom.
