Trump and Wall Street gang up on Mike Burry over latest bearish prediction on Palantir

Michael Burry is still standing against Palantir, even after Trump stepped in and gave the stock a public boost. The fight got louder on Friday when Michael said he still holds long-dated put options on Palantir and is not closing the trade.

He said he first started betting against Palantir in the fall of 2025 and has kept rolling the position forward. His latest post showed he now holds June 17, 2027 $50 puts and December 19, 2026 $100 puts. 

That post landed after Trump praised Palantir on Truth Social and helped the stock bounce from its low point during the day. Trump wrote, “Palantir Technologies (PLTR) has proven to have great war fighting capabilities and equipment. Just ask our enemies!!! President DJT”

The post gave Palantir some relief, but it did not erase the damage. The stock still ended the week down 13.7%. It is also down about 28% so far in 2026. Michael answered Trump’s post with a jab at Alex Karp, saying, “Karp calling his panic attack hotline.”

Burry keeps the Palantir short alive while Trump tries to stop the slide

Michael pointed out that Palantir’s stock has been getting weaker since it reached a high near $200 last year. He also said Palantir is still “wildly overvalued.” He thinks the business is worth less than half of where the shares trade now. On Friday, Palantir closed at $128.06.

Some traders think Palantir could benefit from Trump’s war in Iran because the company does so much work with U.S. defense and intelligence agencies.

At the same time, Alex Karp has kept regular contact with the administration, even though there had been tension before.

Alex has spent years speaking loudly in support of the U.S. military and the idea of giving warfighters better tools. That part is not new. What changed is his relationship with Trump’s administration.

Alex had criticized Trump in the past and had donated to Joe Biden’s campaign before. Now he has backed the new administration and its policies, and Palantir has picked up new government contracts and has gone deeper into Pentagon work.

Wall Street pushes back as Palantir faces Anthropic, Pentagon, and political heat

Meanwhile, Wall Street is making it clear that it disagrees with Michael. Dan Ives at Wedbush pushed back hard and said the idea that Anthropic is taking Palantir’s place is wrong. 

Dan also said in an interview, “And I think that’s it’s this ghost narrative that you’re fighting. Some will be disintermediated, but the reality is that I think it’s the most disconnected trade that I’ve seen in tech since covering it in the late 90s.”

Alex has strongly backed Israel post-Oct. 7. He previously told CNBC that some employees left over his decision to become pro-Israel.

Then there was the episode with Lisa Gordon, the company’s communications chief. In October last year, Lisa said Palantir’s political turn toward the Trump administration was “concerning” during an interview at an event hosted by The Information. The video was then quickly removed from The Information’s YouTube and social media pages, which is certainly interesting to say the least.

There is also the Anthropic issue. Palantir uses Anthropic models, along with models from other AI labs, on its platform. But Anthropic was blacklisted by the Department of Defense after concerns were raised about autonomous weapons and government surveillance. Alex said last month that Palantir would “phase out” Anthropic’s models, but that has still not happened.

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