Investor Michael Burry warns Palantir's market value could tumble below $100 billion

Michael Burry has renewed his criticism of Palantir Technologies, warning that its market capitalisation could collapse to below $100 billion despite a recent AI-driven rally. He described the firm as more of a consultancy than a true software provider, citing a 32% deferred-revenue-to-revenue ratio that mirrors consulting peers. Burry highlighted a surge in accounts receivable to $1.49 billion, with one customer accounting for 27% of that balance, raising concerns about payment risk.

He also attacked Palantir’s reliance on stock-based compensation and large net operating loss carryforwards that eliminated federal cash taxes. Additional grievances included the cancellation of a $1 billion buyback after buying back only $75 million and CEO Alex Karp’s $17.2 million jet expenses in 2025. The warning follows Palantir’s strong Q2 earnings, which showed 93% revenue growth year-over-year.