CEO of Palantir Technologies Alex Karp attends the Pennsylvania Energy and Innovation Summit, at Carnegie Mellon University in Pittsburgh, Pennsylvania, U.S., July 15, 2025.
It's been a tough November for Palantir .
Shares of the software analytics provider dropped 16% for their worst month since August 2023 as investors dumped AI stocks due to valuation fears. Meanwhile, famed investor Michael Burry doubled down on the artificial intelligence trade and bet against the company.
Palantir started November off on a high note.
The Denver-based company topped Wall Street's third-quarter earnings and revenue expectations. Palantir also posted its second-straight $1 billion revenue quarter, but high valuation concerns contributed to a post-print selloff.
In a note to clients, Jefferies analysts called Palantir's valuation "extreme" and argued investors would find better risk-reward in AI names like Microsoft and Snowflake . Analysts at RBC Capital Markets raised concerns about the company's "increasingly concentrated growth profile," while Deutsche Bank called the valuation "very difficult to wrap our heads around."
Adding fuel to the post-earnings selloff was the revelation that Burry is betting against Palantir and AI chipmaker Nvidia . Burry, who is widely known for predicting the housing crisis that occurred in 2008 and his portrayal in the film "The Big Short," later accused hyperscalers of artificially boosting earnings.
Palantir CEO Alex Karp vocally hit the front lines, appearing twice in one week on CNBC, where he accused Burry of "market manipulation" and called the investor's actions "egregious."
"The idea that chips and ontology is what you want to short is bats--- crazy," Karp told CNBC's "Squawk Box."
Despite the vicious selloff, Palantir has notched some deal wins this month. That included a multi-year contract with consulting firm PwC to speed up AI adoption in the U.K. and a deal with aircraft engine maintenance company FTAI.
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