Key takeaways
- PLTR shares fell nearly 6% after Michael Burry’s bubble warning
- ‘Big Short’ Investor Argues Anthropic Gains Market Share as Rate of Return Surges from $9B to $30B
- Palantir’s forward P/E ratio is approximately 115x versus the industry average of 21x
- Analysts’ opinions vary: Rosenblatt maintains $200 buy; The standard expresses evaluation concerns
- The Street consensus remains a Moderate Buy with an average target of $194.61
The Big Short’s legendary investor, Michael Burry, publicly challenged Palantir’s market position on Wednesday with a post on X, declaring the stock potentially overvalued while highlighting Anthropic’s growing dominance in enterprise AI.
PLTR shares fell nearly 6% during regular trading hours after his remarks. After-hours activity showed some recovery as the stock rose again toward $141.18 with renewed buying interest.
Perry previously revealed a short bet against Palantir in early 2025. His comment on Wednesday escalated his criticism, focusing on fundamental shifts in the competitive environment.
“Anthropy eats Palantir’s lunch,” Perry said. “This massive increase from $9 billion to $30 billion in ARR at Anthropic is because Anthropic offers the easiest, cheapest and most intuitive solution for businesses.”
His argument was supported by Ramp data, pointing to a study conducted by economist Ara Kharzian in March 2026. The analysis revealed that nearly 25% of Ramp’s commercial clients now subscribe to human services – a significant increase compared to just 4% twelve months ago.
Puri also emphasized this Anthropic Accounts for 73% of incremental enterprise AI spend, while the broader AI sector displays zero-sum characteristics, with OpenAI recording its largest monthly decline in users ever.
Premium pricing under the microscope
With a forward price-to-earnings multiple hovering around 115x, Palantir commands a significant premium over its sector average of 21x and towers higher than its large-cap AI competitors. This disparity in valuation has continually fueled bearish arguments.
Benchmark’s Yi Fu Lee maintains a Neutral stance with a Hold rating. His position reflects concerns that current pricing assumes flawless operating performance, leaving little room for growth to slow.
Rosenblatt analyst John McPeak takes the opposing view. He is sticking to his Buy recommendation and $200 valuation target, highlighting upcoming developments such as the “Golden Dome” missile defense initiative. McPeak projects Palantir Participation in this contract could generate billions in revenue through 2028.
Bank of America’s Mariana Perez also maintains a buy stance, describing the sell-off as a temporary response to the news flow. It underscores Palantir’s well-established position within critical government data infrastructure as a sustainable competitive moat.
Wall Street perspective
The current analyst consensus is recorded as a Moderate Buy, consisting of 14 Buy ratings, 5 Hold ratings and 2 Sell ratings.
The average price target is $194.61 after volatility, suggesting a potential upside of ~38% from Wednesday’s closing price.
Palantir posted 70% year-over-year revenue expansion in its latest quarterly results, a measure bullish investors point to as validation of the strength of the company’s core business despite controversies over valuation.
Puri is not the only prominent skeptic. Short seller Andrew Left disclosed his short position in Palantir last September, in addition to highlighting Databricks as an outstanding alternative investment.
Since Anthropic remains privately held, investors lack direct mechanisms to benefit from Burry’s competitive thesis – although downward pressure on PLTR has proven tangible.
The official designation of Maven Smart System represents one of the more realistic positive near-term catalysts currently on the horizon for shareholders.
