Burry Sees 66% Palantir Slide to $46, DA Davidson Defends Valuation
Renowned investor Michael Burry’s 10,000-word newsletter warns of a 66% slide in Palantir stock to $46 per share, triggering a 4.83% drop Thursday and further losses in premarket trading. DA Davidson argues Palantir’s strong revenue growth and free cash flow warrant its premium valuation despite high multiples.
1. Bearish Thesis
Michael Burry’s 10,000-word newsletter questions the sustainability of the AI investment cycle and outlines structural valuation risks, forecasting a 66% plunge in Palantir shares to $46 per share.
2. Stock Reaction
Following the newsletter, Palantir shares tumbled 4.83% on Thursday and extended losses in premarket trading as investors reevaluated the company’s exposure to AI valuation pressures.
3. Bullish Counterpoint
DA Davidson counters the bearish outlook by highlighting Palantir’s double-digit revenue growth and robust free cash flow generation, stating these fundamentals support its premium valuation.
4. Valuation Overview
Despite solid revenue growth and improving earnings, Palantir trades at an enterprise-value-to-sales multiple above 20x, underscoring persistent valuation concerns until further operational milestones are met.