Palantir Gains Buy Upgrade on $4.4 Billion Deals, Stock Drops 8% After Burry Claim
Analysts upgraded Palantir to Buy, highlighting its expanding role in NATO modernization and a $4.4 billion government deal pipeline supporting long-term growth. Palantir shares later tumbled as much as 8% after Michael Burry cited data showing Anthropic captured 73% of new enterprise AI spending and held $912 million in put options.
1. Analyst Upgrade and Government Pipeline
Palantir was raised to Buy by analysts who emphasized its growing contribution to NATO-related modernization efforts and a robust government contract pipeline valued at approximately $4.4 billion. The upgrade reflects confidence in Palantir’s long-term revenue visibility driven by defense and intelligence spending.
2. Software Stock Slump Weighs on Shares
Palantir’s shares fell between 6% and 8% following Anthropic’s launch of its frontier AI model, which demonstrated advanced coding and cybersecurity-testing capabilities and is restricted to about 50 organizations. The drop underscores investor concern that AI-native solutions could disrupt established software-as-a-service offerings.
3. Michael Burry’s Critique and Put Options
“Big Short” investor Michael Burry posted that Anthropic is “eating Palantir’s lunch,” citing a corporate spending tracker showing Anthropic’s 73% share of new enterprise AI budgets. Burry’s put options, covering roughly five million Palantir shares and valued at about $912 million, intensified pressure on the stock after his comments.