Why Palantir Technologies Stock Crashed on Thursday
Why Palantir Technologies Stock Crashed on Thursday
Danny Vena, CPA, The Motley FoolThu, February 12, 2026 at 7:23 PM UTC
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Key Points -
Michael Burry, of "The Big Short Fame," suggested Palantir stock could fall by 66%.
Analysts at D.A. Davidson found Burry's analysis flawed.
The stock is expensive by any measure, but could be worth much more down the road.
10 stocks we like better than Palantir Technologies ›
After defying gravity for much of the past few years, Palantir Technologies (NASDAQ: PLTR) is finally coming back to earth, with the stock falling as much as 6.7% on Thursday. As of 2:00 p.m. ET, the stock was still down 5%.
The catalyst that sent the data mining and artificial intelligence (AI) specialist lower was a bearish prediction by a well-known investor.
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Palantir logo on the wall above the shadow of a person walking by.
Image source: Getty Images.
The Big Short
Investor Michael Burry gained fame by famously betting against the housing market in 2008, banking $100 million for himself and $725 million for investors. The movie depicting these events, The Big Short, has become Wall Street canon. Now, the investing icon has set his sights on Palantir.
In a 10,000-word short thesis released today, Burry took issue with Palantir, suggesting the stock could fall as much as 66% from its current price, to about $46 per share. While he provided several possible scenarios with outcomes ranging from $21 to $146 per share, his take was decidedly bearish: "I believe Palantir's recent winning streak will not endure."
Not everyone agrees with Burry's assessment. Analysts at D.A. Davidson reaffirmed their neutral rating and $180 price target on Palantir. The analysts said, "We read all 10,000 words in Michael Burry's newsletter and found no new reason to worry about Palantir."
They went on to point out that Burry's post contained "no new evidence or argument" that would change their view of the company. Despite Palantir being "expensive," the analysts cite the company's accelerating growth and strong cash flow margins as evidence that Burry's critique is flawed.
"Why is Palantir growing so much faster than any other software company at scale?" the analysts asked. "How is it accelerating if it is not adding value? How is it doing so with high cash flow margins?"
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At 202 times earnings, Palantir stock is undoubtedly expensive, but as I have argued before, it may be the rare stock that can live up to its pricey valuation.
Nothing new to see here, folks.
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Danny Vena, CPA has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
Source: “AOL Money”
