TLDR
- Palantir stock fell ~6% after Michael Burry called the company a potential “bubble”
- Burry claims Anthropic is “eating Palantir’s lunch,” citing its ARR growth from $9B to $30B
- PLTR trades at a forward P/E of ~115x, well above its sector median of 21x
- Analysts are split: Rosenblatt has a $200 Buy target; Benchmark holds with valuation concerns
- Wall Street consensus is Moderate Buy, with an average price target of $194.61
Michael Burry, the investor made famous by “The Big Short,” took aim at Palantir on Wednesday in an X post, calling the stock a potential bubble and saying Anthropic is now outcompeting it for enterprise AI dollars.
The post sent PLTR down roughly 6% during the session. The stock later edged back toward $141.18 in after-hours trading as buyers stepped in.
Palantir Technologies Inc., PLTR
Burry had already disclosed a short position in Palantir earlier this year. His latest comments go a step further — arguing the competitive landscape itself has shifted.
“Anthropic is eating Palantir’s lunch,” Burry wrote. “That massive boost from $9B to $30B ARR at Anthropic is because Anthropic offers the easier, cheaper, intuitive solution for businesses.”
He backed his case with data from financial operations platform Ramp, citing a March 2026 analysis by economist Ara Kharazian. According to that report, nearly one in four businesses on Ramp now pays for Anthropic — up from one in 25 just a year ago.
Burry also noted that 73% of new enterprise AI spending is going to Anthropic, and that the AI market is showing zero-sum dynamics, with OpenAI seeing its largest monthly decline on record.
Valuation In Focus
At a forward P/E of around 115x, Palantir trades well above its sector median of 21x and far above other large-cap AI names. That gap has long been a sticking point for bears.
Benchmark analyst Yi Fu Lee holds a cautious view, keeping a Hold rating. He argues the stock is priced for near-perfect execution, and any slowdown in growth could add pressure.
Rosenblatt’s John McPeake disagrees. He reiterated a Buy rating and a $200 price target, pointing to upcoming catalysts including the “Golden Dome” missile defense program. He believes Palantir’s role in that contract could generate billions in revenue through 2028.
BofA analyst Mariana Perez also maintains a Buy, calling the sell-off a short-term reaction to headlines. She sees Palantir’s position in mission-critical government data as a durable advantage.
What Analysts Are Saying
Wall Street’s current consensus sits at a Moderate Buy, based on 14 Buys, 5 Holds, and 2 Sells.
The average price target following the volatility remains at $194.61, implying around 38% upside from Wednesday’s close.
Palantir reported 70% revenue growth in its most recent quarter, a number bulls point to as evidence the company’s fundamentals remain intact despite the valuation debate.
Burry is not alone in his skepticism. Short-seller Andrew Left disclosed a short position in Palantir back in September, also flagging Databricks as a preferred alternative.
Anthropic is not publicly traded, which means investors cannot directly bet on Burry’s thesis — but the pressure on PLTR has been real.
The Maven Smart System gaining official status remains one of the more concrete near-term catalysts for the stock.
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