Michael Burry, the investor famed for predicting the 2008 housing crash, has positioned significant bearish bets against major AI-related firms, including Palantir. According to his recent Substack disclosures, Burry holds large put-option positions on Palantir, citing concerns that hyperscale cloud providers and AI platforms understate asset depreciation and mask ongoing costs. This tactical allocation follows Scion Asset Management’s transition to a private family office, and reflects Burry’s view that elevated valuations in the AI sector remain disconnected from fundamentals.

Palantir reported 63% year-over-year revenue growth in Q3 of fiscal 2025, marking its ninth consecutive quarter of acceleration. The company’s adjusted operating margin reached a record 18.2%, driven by modular pricing on its flagship AI Platform and tight expense controls. Total contract value in the U.S. commercial segment surged 342% year-over-year, while bootcamp-driven deal velocity contributed to a 121% increase in U.S. commercial revenue over the same period, underscoring effective customer onboarding and scalable sales operations.

Palantir has deepened its footprint through multi-year agreements, notably a $26 million investment from Surf Air Mobility to expand its SurfOS platform, slated for commercial launch in 2026. Additionally, the company’s heavy investments in platform development—capitalized at $330 million over the past year—support its long-cycle contracts, which average 4.5 years and deliver stable, recurring revenues. These factors underpin a durable return on equity trajectory; despite trailing peer averages at 27.6%, Palantir’s reinvestment rate and software-as-a-service model forecast sustainable ROE expansion over the next decade.