Palantir Shares Sink as Michael Burry Warns of Rising Threat From Anthropic

This article first appeared on GuruFocus.

Palantir Technologies (NASDAQ:PLTR) shares fell about 6% on Wednesday after investor Michael Burry (Trades, Portfolio) criticized the company’s positioning in enterprise artificial intelligence.

The pullback in Palantir stock followed Burry’s comments that privately held Anthropic is gaining traction in the corporate AI market. He pointed to rapid growth in recurring revenue at Anthropic, suggesting businesses may be favoring simpler and lower-cost AI tools.

Palantir stock remains under scrutiny due to valuation concerns. The company trades at a forward earnings multiple well above sector averages, which may leave less room for execution missteps. Some analysts have maintained cautious views, noting expectations appear elevated relative to peers.

Other analysts continue to back the longer-term outlook for Palantir stock, citing demand tied to government contracts and AI-driven software platforms. Consensus ratings remain moderately positive, though recent volatility highlights diverging views on growth sustainability.

Palantir stock has gained attention for strong recent revenue expansion, but shifting competitive dynamics in enterprise AI could shape investor sentiment in the near term.