Unveiling the Looming Decline: Burry's Dire Prediction for Palantir
Analyzing the Downward Trajectory: Burry's Technical Blueprint for Palantir
In a recent online post, celebrated investor Michael Burry revealed a technical assessment of Palantir's stock journey, highlighting a textbook "Head & Shoulders" reversal formation. This pattern suggests a significant impending downturn in the stock's value. His analysis pins the next major support level around $80, with a projected bottoming out between $50 and $60. Given the stock's current trading price of $142.91, reaching the $60 mark would signify a dramatic 58% drop. This technical prognosis is consistent with Burry's long-standing fundamental doubts about Palantir, evidenced by his substantial options bet against the company last November.
The "Modern Era's Deceptions": Burry's Critique of Tech Valuations
Burry has previously characterized certain rapidly expanding tech companies, particularly those he has bet against, as "frauds of the modern era." This strong language underscores his deep skepticism regarding the sustainability and genuine value of some current market darlings. His consistent warnings about an impending "AI bubble" suggest a belief that many high-flying tech stocks, including Palantir, are overvalued and poised for a correction, irrespective of their recent financial performance or market buzz.
Addressing Overvaluation: Palantir's Financial Standing Under Scrutiny
Despite Palantir CEO Alex Karp's dismissal of Burry's short positions as "crazy," Burry remains resolute in his conviction. His latest chart analysis implies that the "AI bubble" he has often cautioned against is showing signs of weakening, irrespective of the company's recent strong earnings reports. According to financial analytics, Palantir's stock continues to exhibit a weaker price trend across short, medium, and long-term horizons, coupled with a very low valuation ranking, suggesting underlying concerns about its true market worth.
Palantir's Recent Market Performance: A Look at the Numbers in 2026
Palantir shares have seen a significant decline of 19.60% since the beginning of the year, contrasting sharply with the Nasdaq 100's modest gain of 0.25% over the same period. The stock also experienced a 23.56% decrease over the past six months, although it did post a 28.92% increase over the full year. On a recent trading day, the stock closed 5.16% higher at $142.91 per share, with an additional 1.02% rise in after-hours trading, indicating some short-term volatility within a broader downward trend.