‘The Big Short’ Investor Michael Burry Reflects On Palantir’s Billions In Losses Before 2020 Debut

Michael Burry said Palantir became widely recognized in the decade leading up to its 2020 debut as a secretive but influential player working alongside major government and corporate partners.

• Burry said Palantir became widely recognized in the decade leading up to its 2020 debut as a secretive but influential player.
• Palantir’s S-1 filing before IPO showed that the company had accumulated nearly $4 billion in losses through June 30, 2020. 
• In the two years prior to listing, it posted a combined deficit exceeding $1 billion, the investor added.

Michael Burry, the investor known for predicting the U.S. housing market crash, has revisited Palantir Technologies Inc. (PLTR) and its costly path to the public markets, highlighting how the data analytics firm built a powerful reputation long before investors saw the full financial picture.

In a post on the X platform, Burry reflected on the company’s early years. 

Rise To Prominence

He said Palantir became widely recognized in the decade leading up to its 2020 debut as a secretive but influential player working alongside major government and corporate partners, even as its mounting losses remained largely out of view.

“Taken together, in the decade before it went public (in late 2020), Palantir, rightfully or wrongfully, and almost entirely not of its own doing, was becoming a household name as an influential, secretive company that worked with powerful partners. Few knew how much money it was losing.”

Palantir stock inched 0.7% higher in Thursday’s premarket. On Stocktwits, retail sentiment around the stock changed to ‘neutral’ from ‘bullish’ territory the previous day. Message volume shifted to ‘normal’ from ‘high’ levels in 24 hours. 

Filing Reveals Losses

Burry said the secrecy changed mid-2020 when Palantir submitted its S-1 registration statement ahead of its direct public offering. The filing showed the company had accumulated nearly $4 billion in losses through June 30, 2020. 

In the two years prior to listing, it posted a combined deficit exceeding $1 billion, the investor added. Those figures offered a stark contrast to the perception of the business's strength.

Burry highlighted that Palantir’s private fundraising rounds also came at significant valuations.

“The later funding rounds were not cheap. The largest single round, Series K at $899 million, was done at $11.38/share in 2019," Burry said. 

In November, Burry revealed he had bet against shares of Palantir and AI chip leader Nvidia. Around the same period, he posted on social media expressing his belief that the AI sector was in a bubble.

PLTR stock has gained over 15% in the last 12 months. 

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