I have put together a look at the current Palantir situation that captures that mix of market pressure and your personal strategy. I’ve incorporated the latest on Burry’s thesis and the technical signals suggesting the stock might be reaching an exhaustion point for sellers.

I’ve been watching my Palantir holdings take a significant hit lately as the stock has pulled back roughly 37% from its recent highs. This drop seems to be driven by a combination of extreme valuation fatigue—with the price-to-earnings ratio recently hitting a staggering 214x—and a broader rotation out of high-flying AI software names. There’s also been fresh anxiety surrounding potential defense budget cuts and technical "head and shoulders" patterns that have triggered automated selling across the board.

The clear winner in this carnage has been Michael Burry, the "Big Short" investor, who has been aggressively vocal about his bearish stance. He recently released a 10,000-word manifesto arguing that the AI boom is a bubble on par with the dot-com era, and he’s specifically targeted Palantir for its historical unprofitability and aggressive accounting. Burry has set a grim price target in the $46–$50 range, betting that the stock still has a long way to fall before it hits fair value.

Despite the depleting profits  in my position and Burry’s dire warnings, I am choosing to hold steady. The selling feels increasingly climactic, and with the daily Relative Strength Index (RSI) dipping into oversold territory, I believe the stock is due for a relief rally. While Burry is focused on the past, I am looking at the 70% revenue growth and the massive 137% surge in U.S. commercial demand. I think the market is throwing the baby out with the bathwater here, and I'd rather bet on the company's actual execution than a short-seller’s spreadsheet.