Burry Maintains Bearish Bet on Palantir Despite Trump Endorsement

Michael Burry, the investor known for betting against the housing market in "The Big Short," said Friday he is holding long-dated put options against Palantir Technologies even after President Donald Trump praised the defense software company on Truth Social. Burry has held the bearish position since fall 2025 and currently owns June 2027 puts at a $50 strike price and December 2026 puts at a $100 strike price, according to a Substack post.

Burry's public statement came hours after Trump wrote on Truth Social that Palantir "has proven to have great warfighting capabilities and equipment," a post that temporarily lifted the stock off its intraday lows. Despite the presidential endorsement, Palantir shares were tracking toward a 13% weekly decline and have fallen 28% year-to-date as of Friday. The stock traded around $127 per share at the time of Burry's post.

The investor argued that Palantir remains "wildly overvalued" despite its peak near $200 in 2025. Burry stated he believes the company's fundamental value is "well under $50 per share," less than half its current trading price. He acknowledged the possibility of a near-term rally but said he is not selling his put positions.

Palantir has deepened its relationship with the Trump administration, securing new government contracts and expanding work with the Pentagon under CEO Alex Karp. The company's ties to U.S. military and intelligence agencies have positioned it as a potential beneficiary of increased defense spending and the ongoing Iran war.

Context

Burry's bearish stance on Palantir mirrors his previous high-profile short position against Nvidia, disclosed by his former hedge fund Scion Asset Management last year. That disclosure prompted Palantir CEO Alex Karp to publicly call Burry's wagers "super weird" and "batsh-- crazy" on social media. Burry's most famous trade was his bet against mortgage-backed securities ahead of the 2008 financial crisis, which generated returns exceeding 400% for his investors and became the subject of the 2015 film "The Big Short."

Palantir's stock volatility reflects broader weakness in software equities. The company went public in September 2020 at $10 per share and reached its 2025 peak amid enthusiasm over its artificial intelligence capabilities and government contracts. The current 28% year-to-date loss stands in contrast to the stock's 150% gain in 2024.

What's Next

Burry's public commitment to holding his puts through June 2027 signals he expects a prolonged decline in Palantir's valuation. The outcome of this bet will depend partly on whether Palantir can convert its expanded government relationships into sustained revenue growth or whether investor enthusiasm for the stock eventually fades. Earnings reports and new contract announcements from Palantir will likely test whether Burry's valuation thesis holds or whether Trump's endorsement signals genuine operational momentum.