Michael Burry re-established out-of-the-money put positions against Palantir Technologies Inc. (PLTR) on Monday, purchasing March 2027 puts with strike prices in the low-to-mid $100 range, according to his Cassandra Unchained report.
Burry capitalized on a recent drop in implied volatility to refresh his bearish stance after partially covering his short position near $107. His core thesis: Palantir shares are worth under $1 long term.
The case rests on three structural concerns. First, Palantir trades at 69 times sales—a valuation Burry views as indefensible. Second, the company issued 31.3 million shares to staff over the past year, valued at roughly $5 billion, which represents about six times its reported stock-based compensation expense. Burry identified this as the widest accounting gap among 66 companies he recently reviewed. Third, Palantir's off-balance-sheet non-cancellable infrastructure purchase commitments more than tripled this year.
Palantir's stock has recently traded near $175, up nearly 40 percent in the week ending Aug. 7, driven by strong quarterly earnings that topped revenue estimates and posted GAAP net income approaching $3 billion annually. Demand for its Artificial Intelligence Platform across commercial and government sectors accelerated U.S. commercial revenue and expanded operating margins, prompting management to raise full-year guidance.
Burry also disclosed an addition to his long position in Zoetis Inc. (ZTS), the animal health company. He cited its share price decline as having cleared out weaker retail investors and noted Zoetis offers superior margins relative to peers.
