CEO of Palantir Applied sciences Alex Karp attends the Pennsylvania Vitality and Innovation Summit, at Carnegie Mellon College in Pittsburgh, Pennsylvania, U.S., July 15, 2025.
Nathan Howard | Reuters
It has been a troublesome November for Palantir.
Shares of the software program analytics supplier dropped 16% for his or her worst month since August 2023 as investors dumped AI shares as a result of valuation fears. In the meantime, famed investor Michael Burry doubled down on the unreal intelligence commerce and guess in opposition to the corporate.
Palantir began November off on a excessive be aware.
The Denver-based firm topped Wall Avenue’s third-quarter earnings and income expectations. Palantir additionally posted its second-straight $1 billion revenue quarter, however excessive valuation considerations contributed to a post-print selloff.
In a be aware to shoppers, Jefferies analysts known as Palantir’s valuation “excessive” and argued buyers would discover higher risk-reward in AI names comparable to Microsoft and Snowflake. Analysts at RBC Capital Markets raised considerations concerning the firm’s “more and more concentrated progress profile,” whereas Deutsche Financial institution known as the valuation “very troublesome to wrap our heads round.”
Including gas to the post-earnings selloff was the revelation that Burry is betting in opposition to Palantir and AI chipmaker Nvidia. Burry, who’s extensively recognized for predicting the housing disaster that occurred in 2008 and the portrayal of him within the movie “The Large Brief,” later accused hyperscalers of artificially boosting earnings.
Palantir CEO Alex Karp vocally hit the entrance strains, showing twice in a single week on CNBC, the place he accused Burry of “market manipulation” and known as the investor’s actions “egregious.”
“The concept chips and ontology is what you wish to brief is bats— crazy,” Karp advised CNBC’s “Squawk Box.”
Regardless of the vicious selloff, Palantir has notched some deal wins this month. That included a multiyear contract with consulting agency PwC to hurry up AI adoption within the U.Okay. and a cope with plane engine upkeep firm FTAI.
However these bulletins did little to shake off valuation worries which have haunted all AI-tied firms in November.
Throughout the board, buyers have viciously ditched the high-priced group, citing fears of stretched valuations and a bubble.
In November, Nvidia pulled again greater than 12%, whereas Microsoft and Amazon dropped about 5% every. Quantum computing names comparable to Rigetti Computing and D-Wave Quantum have shed greater than a 3rd of their worth.
Apple and Alphabet have been the one Magnificent 7 shares to finish the month with beneficial properties.
Sill, questions linger over Palantir’s valuation, and people worries aren’t a brand new concern.
Even after its steep value drop, the corporate’s inventory trades at 233 occasions ahead earnings. By comparability, Nvidia and Alphabet traded at about 38 occasions and 30 occasions, respectively, at Friday’s shut.
Karp, who has lengthy defended the corporate, did not miss a possibility to clap back at his critics, arguing in a letter to shareholders that the corporate is making it possible for on a regular basis buyers to realize charges of return as soon as “restricted to probably the most profitable enterprise capitalists in Palo Alto.”
“Please activate the standard tv and see how sad those who did not spend money on us are,” Karp stated throughout an earnings name. “Get pleasure from, get some popcorn. They’re crying. We’re each day making this firm higher, and we’re doing it for this nation, for allied international locations.”
Palantir declined to remark for this story.
WATCH: Palantir CEO Alex Karp: We’ve printed venture results for the average American
