Michael Burry and Alex Karp are currently in a public clash. Burry, known for his role in “The Big Short,” criticized Karp, the CEO of Palantir, after Karp called Burry’s investment strategies “batshit crazy” during a TV interview.
Burry responded on X, saying it was no surprise that Karp’s company’s obsession with “ontology” couldn’t decipher a simple 13F filing. He emphasized the importance of having enough data for sound conclusions in both philosophy and data science.
In a recent portfolio update, Burry revealed that his firm, Scion Asset Management, held bearish put options on 5 million Palantir shares valued at $912 million, as of September’s end. He also had put options on 1 million shares of Nvidia, valued at $187 million. Following this news, Palantir’s stock fell 15% in just three days.
Karp defended Palantir during an appearance on CNBC, questioning why Burry would bet against two companies that seem to be thriving. He called the situation “super weird” and dismissed Burry’s strategy as nonsensical. Karp expressed frustration over short sellers targeting Palantir, stating that the company aims to support retail investors and military personnel.
Here’s an interesting fact: Palantir’s revenue surged 63% year-over-year, reaching around $1.2 billion in the last quarter, and the stock has skyrocketed nearly 28 times since the start of 2023. This rapid growth has lifted the company’s market value to approximately $422 billion, eclipsing giants like Costco and Bank of America.
Meanwhile, Burry indicates he might have exited his short position against Palantir. Regulatory filings only capture a short snapshot of an investor’s holdings, so the full picture can be unclear. Recent posts suggest Burry may have closed out his bet, hinting at a more cautious approach regarding the AI boom. He recently pointed to the possibility that the current enthusiasm for AI could mirror past bubbles, making investors wary.
Karp seems determined to prove Burry wrong and continues to advocate for Palantir’s mission, vowing to drive efforts to support their investors. It’s a turbulent time for both parties, and the evolving dynamics between traditional investment strategies and emerging technologies will be fascinating to watch.
For further information on Palantir’s economic impact, you can check the recent report by Markets Insider.
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