The ‘Big Short’ investor, who disclosed a short position in PLTR last year, has forecasted a steep stock correction.
- Burry said Palantir’s accounts receivable and revenue growth have been uneven, unlike the steady trends seen in software companies.
- He criticized CEO Alex Karp’s jet expenses, which grew 123% last year and were significantly higher than those of peer technology executives.
- In an earlier analysis, Burry said he expects PLTR stock to drop to around $54.
Michael Burry is ramping up his criticism of Palantir, this time flagging concerns over the company’s accounting practices and calling out the hefty spending on CEO Alex Karp’s private jet.
Burry, famously known as “The Big Short” investor who predicted the 2008 financial market crash, argued that Palantir's business and finances aren't as strong or straightforward as they seem.
Palantir Bills Like Consulting Firm, Not Saas
In an X post, which carried excerpts from his latest Substack column titled "Palantir: An Accounting," he said Palantir's accounts receivable (money owed by customers) has grown much faster than actual revenue in recent quarters, hinting that the company could be booking sales aggressively through “nefarious tricks.”
“In 9 of the last 12 quarters, AR (account receivables) grew faster than revenue – a persistent pattern generally attached to nefarious tricks such as channel stuffing, aggressive revenue recognition, or extended payment terms used as sales concessions,” he said in his column, the large chunk of which is available only to paid subscribers.
Burry’s analysis is based on Palantir’s 10-K filing (annual report) from Tuesday.
In Burry’s view, Palantir’s financials resemble those of a consulting firm rather than a typical software-as-a-service (Saas) company. SaaS firms usually have steady, predictable income from subscriptions, but Palantir's looks uneven, with big ups in some quarters and downs in others – suggesting that the company is likely billing for custom work and hands-on help rather than just selling software.
Palantir's moat has been its high-quality workers, a strategy that isn’t sustainable as the company grows in scale, Burry argued. He also criticized Palantir for shifting its marketing stance, first downplaying AI in favor of data integration, then pivoting to aggressively tout AI to ride the hype and attract investors.
PLTR CEO Jet Cost Higher Than Mark Zuckerberg’s
In a separate X post, he pointed out that the expense from Karp’s personal jet increased 123% from $7.7 million in 2024 to $17.2 million in 2025. That’s much higher than fellow tech executives, he said, highlighting $1.8 million spent on Meta CEO Mark Zuckerberg’s jet and $2.4 million on Palo Alto Networks CEO Nikesh Arora's private air travel.
Palantir Hype, Stock Move
Over the past years, Palantir has consistently delivered strong financial numbers and exceptional stock upside, making it one of the most watched stocks in the market.
Burry first disclosed a short position in Palantir last November, a development that has pressured the company’s shares since. Earlier this month, Burry teased a technical analysis showing a head-and-shoulders forming pattern in the PLTR chart and forecasted an over 40% drop in price from the levels at the time.
Palantir shares are down 24% year to date.
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