Burry shorts Palantir after Trump's war‑praise; AI hype
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- Michael Burry posted (and later deleted) a critique that Palantir's reliance on government contracts and high valuation make it a risky bet, noting Anthropic's 73% share of new enterprise AI spending.
- President Trump praised Palantir's war‑fighting capabilities on Truth Social, highlighting its role in the US‑Iran conflict.
- Palantir Technologies (PLTR) reported $1.2 billion in U.S. government revenue for 2024 and trades at 100‑235× earnings, far above the sector’s ~20× average, after a >16% drop in one month.
- Howard Marks warned that AI’s long‑term profitability remains uncertain, saying investors won’t know in 10 years if the hype is justified, and questioned whether current AI infrastructure spending is excessive.
- Claude (AI chatbot) responded to Marks that AI demand outpaces supply, a view Marks cautioned may ignore existing infrastructure and possible demand slowdown.
Why it matters: Palantir’s >16% price drop may pressure investors with short positions like Burry.
