Palantir Defies Burry's Red Flag with 8% Rally

Palantir Technologies' stock jumped approximately 8% on Thursday, rebounding from Wednesday's nearly 6% decline and trading near $183.

This recovery came despite criticism from prominent short-seller Michael Burry, who reiterated his bearish views on the company in a post on X early Thursday.

Burry argued that Palantir is 'back in the stratosphere' due to AI FOMO demand and warned that its market cap could eventually fall below $100 billion.

The short-seller highlighted several red flags, including accounts receivable trends, rising days sales outstanding, deferred revenue patterns similar to those of consulting firms like Accenture, elevated stock-based compensation, and large net operating losses.

However, investors largely shrugged off Burry's criticism, with the primary catalyst for the sharp rebound being an expanded strategic alliance between Palantir and PwC US.