"Michael Burry has been butting heads with the bulls on Wall Street, specifically regarding . The bulls have won big so far, and the price targets have gotten even bolder. On the other hand, most analysts are sitting on the fence with a "Hold" rating, with three analysts having "Sell" ratings on the stock. There are four "Strong Buy" ratings, with the highest price target at $255, from Bank of America (NYSE:BAC)."
"Burry believes PLTR stock may be on the cusp of an implosion, with his bearish thesis focusing on the sky-high valuation of the stock. PLTR stock trades at 156 times trailing sales and at 552 times trailing earnings. It still trades at 175 times next year's expected earnings, which is an unprecedented valuation that no other big tech stock has seen since the Dot Com era."
Michael Burry purchased put options betting Palantir shares will collapse, holding positions that represent a large notional value though he reported spending about $9.2 million for the contracts. The puts cover roughly 5 million shares with a $50 strike expiring in 2027. Palantir's valuation metrics are extremely high: 156 times trailing sales, 552 times trailing earnings, and 175 times next-year expected earnings. Analysts are mixed, with many "Hold" ratings, three "Sell" ratings, and four "Strong Buy" ratings; the highest price target cited is $255 from Bank of America. Palantir's CEO publicly criticized Burry's stance.
Read at 24/7 Wall St.
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