Cathie Wood’s ARK Invest sold 39,233 Palantir shares across ARKK and ARKF, worth $6.38 million at Tuesday’s close.
- Michael Burry doubled down after the rally, saying he wished he had been short nearly $1 trillion worth of Palantir.
- Palantir’s second-quarter revenue jumped 93% to $1.94 billion, while adjusted earnings of $0.41 per share beat Wall Street’s estimates.
- Morningstar praised Palantir’s growth and margins but warned of “little margin for error.”
Shares of Palantir Technologies (PLTR) posted their strongest session in six months on Tuesday after record growth and raised guidance, but Michael Burry doubled down on his bearish stance, and Cathie Wood’s ARK Invest trimmed its holdings.
PLTR stock surged 29% on Tuesday to $162.66, closing at its highest level in more than six months.
Burry Doubles Down On PLTR Short
Burry renewed his criticism on Tuesday after Palantir’s post-earnings surge. “When CNBC said I was short nearly $1 trillion Palantir last year and got Alex all in a huff, it seemed a 100x mistake,” he said on X. “I no longer believe it was a mistake.”
“Of course, I wish I had been short $1 trillion Palantir,” Burry added. In June, Burry had reduced part of his exposure without abandoning his broader bearish thesis. In May, he said Palantir was worth “low double digits at best.”
In his latest Substack post late Tuesday, Burry confirmed that he continued to hold short positions in Palantir and several other companies. “I continue to hold my short positions in the SOXX, MU, NVDA, CAT, PLTR, TSLA, and AMAT stocks,” he wrote. “I remain confident in my evaluation of their prospects over the next few years. But I will cut losses if they move against me.” Burry opened his Palantir short before the company’s first-quarter earnings on May 4, arguing that the business was worth “low double digits at best.”
“I am shorting the business model,” he said. “I am shorting the entire premise upon which the company rests. I am shorting the CEO.” In April, Burry disclosed June 2027 puts with a $50 strike and December 2026 puts with a $100 strike, arguing that Palantir’s fundamental value was “well under $50/share.” His public bet against Palantir dates to November 2025, when Scion Asset Management disclosed put options covering about five million shares with a notional value of $912 million.
Cathie Wood’s ARK Sells Into PLTR Rally
ARK Invest also reduced its Palantir holdings on Tuesday. The Wood-led firm sold 31,469 shares through the ARK Innovation ETF (ARKK) and another 7,764 through the ARK Fintech Innovation ETF (ARKF), for a combined 39,233 shares. Based on Palantir’s Tuesday closing price, the combined 39,233-share sale was worth $6.38 million.
Palantir was the largest trade by portfolio weight among the transactions disclosed for both on Tuesday. The sale represented 0.0893% of ARKK and 0.1769% of ARKF.
Palantir Delivers Record AI Growth
Palantir’s second-quarter (Q2) revenue jumped 93% to $1.94 billion, beating the $1.81 billion estimate. Adjusted earnings of $0.41 per share topped expectations of $0.35. U.S. commercial revenue surged 149% and government revenue rose 90%. Palantir closed 220 deals worth at least $1 million, including 73 valued above $10 million.
“Our Q2 results are unprecedented but entirely unsurprising,” chief revenue officer Ryan Taylor said, citing “record highs across the board.” Palantir also raised its 2026 revenue forecast to between $8.15 billion and $8.16 billion, above its previous top end of $7.66 billion and the $7.72 billion consensus.
CEO Alex Karp said Palantir aims to sustain its U.S. commercial growth pace for another 18 months. “For everyone on the sidelines, you got to get off the sidelines,” Karp said, predicting a “much, much, much, much larger company.”
Bank of America said Palantir is in “the right place, at the right timing” as businesses move from experimenting with AI to putting it into practice. Meanwhile, Morningstar called Palantir’s growth and margins the strongest in its software coverage but warned that the valuation leaves “little margin for error.” “Ostentatious growth is needed to placate investors, and we got that this quarter,” the brokerage said. Morningstar maintained its $153 fair-value estimate, which implies a 6% downside from current levels.
How Do Retail Traders Feel About PLTR?
On Stocktwits, retail sentiment for PLTR jumped to ‘extremely bullish’ from ‘neutral’ levels a week ago amid ‘extremely high’ message volume.
One user said, “$PLTR Burry thought that he would scare everyone out after he bullshitted that PLTR was a lost cause to make money on his huge short position, but it backfired on him. PLTR IS THE FUTURE OF DEFENSE”
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Another user said, “$PLTR Palantir posted an unparalleled quarter in Software history, yet again. Current growth is impressive, but what’s even more impressive is that it is sustainable for many quarters to come.”
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PLTR stock has risen 1% over the past year.
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