TLDR
- Michael Burry bought March 2027 put options on Palantir with strike prices in the low-to-mid $100s, betting on a large drop from current levels near $173.
- Palantir CTO Shyam Sankar sold $5.45 million in stock on August 6, though the sale was made under a pre-planned Rule 10b5-1 agreement.
- Palantir reported Q2 revenue of $1.94 billion, up 94% year over year, beating Wall Street estimates of $1.81 billion.
- Burry’s concern centers on valuation: the stock trades at over 50 times 2026 sales and nearly 100 times free cash flow.
- Wall Street holds a Moderate Buy consensus with an average price target of $197.21, implying about 12.5% upside from current levels.
Michael Burry is back betting against Palantir, and this time he is going further out. Burry disclosed new March 2027 put options on PLTR with strike prices in the low-to-mid $100s, while the stock was trading around $173 in pre-market on Tuesday.
Palantir Technologies Inc., PLTR
That is a big gap. Burry is not looking for a small pullback. He is positioning for a steep decline over the next several months.
He disclosed the move on his Cassandra Unchained Substack. Burry also previously covered part of an earlier short position near $107. He entered the new puts when option prices fell to multi-month lows, giving him a cheaper entry point.
PLTR is down about 1.4% year to date, but the stock surged more than 40% in just the past five days. That kind of move draws attention, and not all of it is bullish.
Burry’s Valuation Case Against Palantir
Burry’s argument is not about the business. He has acknowledged Palantir’s growth. His issue is the price investors are paying for it.
In a recent post, he compared Palantir to Northrop Grumman, General Dynamics, Lockheed Martin, and L3Harris. His point is that investors could buy a basket of established defense companies for a similar valuation to what they are paying for Palantir alone.
A bearish analysis from Stone Fox Capital puts the stock at more than 50 times 2026 sales and nearly 100 times free cash flow. Palantir fell roughly 50% after its valuation reached elevated levels in late 2025. Burry appears to be watching for a repeat.
CTO Sells $5.4 Million, But Context Matters
Palantir CTO Shyam Sankar sold 35,000 Class A shares on August 6 for $5.45 million. The sale was executed at prices ranging from $153.40 to $157.44.
The key detail is that the sale was made under a Rule 10b5-1 plan set up on March 11, well before the recent price surge. That means Sankar scheduled the sale months in advance, so it does not necessarily reflect a change in his view of the company.
Sankar still directly owns 642,786 Class A shares. Another 599,899 are held through a trust.
TipRanks data does show $43.7 million in total insider selling over the past three months, and the platform flags a Negative Insider Confidence Signal based on two informative transactions in that window.
Palantir’s Q2 numbers gave bulls something to hold onto. Revenue hit $1.94 billion, up 94% year over year and ahead of the $1.81 billion estimate. Adjusted EPS came in at $0.41, beating the $0.34 consensus.
The company guided for roughly $2.16 billion in Q3 revenue and about $8.15 billion for full-year 2026.
Deutsche Bank’s Brad Zelnick upgraded PLTR to Buy from Hold, keeping his $200 target. BofA’s Mariana Perez Mora held her Buy rating and $255 Street-high target.
On TipRanks, PLTR carries a Moderate Buy consensus with an average price target of $197.21.
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