Palantir Stock Defies Red Flag and Skyrockets 8% – Here’s Why

Mitrade Team
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Palantir Technologies’ stock jumped approximately 8% on Thursday, recovering from the previous session’s nearly 6% decline and trading near $183.

The rebound came even as prominent short-seller Michael Burry, known for his role in “The Big Short,” renewed his long-standing bearish critique of the company.

Palantir (PLTR) Price Performance. Source: TradingView

Burry’s Renewed Case Against Palantir

In a detailed post on X early Thursday, Burry reiterated that Palantir is back in the stratosphere and that the facts have not changed. He described the firm as a consultant riding a bubble of AI FOMO demand and warned that its market cap could eventually fall well below $100 billion.

Burry focused on accounts receivable trends, noting that receivables had grown faster than revenue in 9 of the last 12 quarters, with one customer accounting for about 25% of receivables while contributing less than 10% of revenue.

He also highlighted rising days sales outstanding, deferred revenue patterns resembling those of consulting firms like Accenture rather than pure SaaS peers, elevated stock-based compensation, and large net operating losses. Burry disclosed that he remains short the stock and holds put options.

“…Any way I slice it, Palantir is losing either bargaining power or it is channel stuffing, or both. The former is a weak business position, and the latter a crime. Do not laugh. That latter possibility is actually not so far out there. The pattern supports potential channel stuffing, perhaps even more than a loss of bargaining position, and again they are not mutually exclusive…,” Michael Burry said on X.

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Why the PwC Deal Sent the Stock Higher, at Least for a Day

Despite the high-profile criticism, investors largely shrugged it off. The primary catalyst for the sharp rebound was the announcement of an expanded strategic alliance between Palantir and PwC US.

The collaboration combines Palantir’s Foundry and Artificial Intelligence Platform with PwC’s industry expertise, engineering capabilities, and managed services.

The main focus of this deal is an AI-native deals platform. It’s designed to execute transactions up to 50% faster while reducing one-time costs by up to 45%.

That momentum held through the close. PLTR finished the session at $183.03, up 8.01%, or $13.57, from the previous close of $169.46, according to TradingView data.

Over a longer horizon, the stock is down 1.36% over the past five days but remains up 25.69% for the month and 21.27% over six months. Year-to-date, shares sit modestly positive, up 0.63%, a far cry from the essentially flat picture seen just weeks earlier.

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Disclaimer: The content presented above, whether from a third party or not, is considered as general advice only. CFD trading involves significant risk of loss. Past performance does not guarantee future results. This article serves informational purposes only and does not constitute financial advice. Consider your risk tolerance before trading.

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