Overview
- Michael Burry publicly renewed his bearish case against Palantir, saying its AI-driven market value could fall below $100 billion and pointing to specific accounting and governance red flags.
- Palantir continues to post strong results, reporting 93% year‑over‑year Q2 revenue growth to $1.94 billion and raising its 2026 revenue outlook to $8.15 billion, which has driven its market value into the high hundreds of billions.
- Burry highlighted rising accounts receivable that reached about $1.49 billion and said one customer accounted for roughly a quarter of receivables, a concentration he argues creates cash‑flow and leverage risk.
- He also flagged a deferred‑revenue‑to‑revenue ratio near 32%, large net operating loss carryforwards that left the company with no federal cash taxes in 2025, a canceled $1 billion buyback after minimal repurchases, and CEO Alex Karp’s disclosed $17.2 million in aircraft‑related expenses.
- The dispute sharpens a broader debate over whether Palantir is primarily a high‑margin subscription software firm or a services‑heavy operator, and it raises the risk that investors and analysts will focus on receivables, deferred revenue and cash tax mechanics as drivers of future share‑price swings.