Michael Burry Rebuilds Palantir Puts With March 2027 Strikes as Stock Jumps 64%
Updated
Updated · TheStreet · Aug 12
Michael Burry Rebuilds Palantir Puts With March 2027 Strikes as Stock Jumps 64%
2 articles · Updated · TheStreet · Aug 12
Summary
March 2027 Palantir put options struck in the low-to-mid $100s were bought by Michael Burry on Aug. 10, rebuilding a bearish position after implied volatility fell and option prices got cheaper.
Burry’s updated thesis centers on accounting rather than just valuation: he says Palantir issued 31.3 million shares worth about $5 billion to employees over the past year and has sharply increased off-balance-sheet infrastructure commitments.
Palantir trades near $175.52 with a roughly $420 billion market cap, about 73 times trailing sales and 112 times forward earnings, levels Burry says imply long-term intrinsic value of under $1.
That bet runs against a blockbuster Q2 reported Aug. 3: revenue rose 93% to $1.935 billion, GAAP net income reached $1.062 billion, and full-year 2026 revenue guidance was lifted to about $8.15 billion.
The clash now is between exceptional operating growth and doubts over earnings quality and valuation, with Burry’s long-dated puts giving him time for a multiple compression trade to play out.