America’s biggest investor Michael Burry has renewed his criticism of Palantir Technologies, wanting that the valuation of the company could collapse below $100 billion. Despite Palantir’s AI-fueled rally that has lifted its market capitalisation to $407.2 billion, Burry argued the company resembles a consulting firm more than a true software business. Palantir shares slid 6% last week to close at $169.46, marking their worst session in over a week and tracking their weakest week in two months.
The facts have not changed,” he said in a post on X. “Palantir is back in the stratosphere.
Questioning the software label
He pointed to Palantir’s deferred-revenue-to-revenue ratio of about 32% — close to Accenture’s 31%, but far below the 80%-to-207% range he calculated for true SaaS peers — as evidence that the company isn’t the software business its narrative suggests.
He also cited an unverified private conversation among former Palantir employees describing the company’s real “moat” as its willingness to staff clients with people working extremely long hours rather than software alone, with one participant reportedly dismissing its AIP branding as opportunistic. Burry further argued that Palantir’s deferred-revenue patterns look more like those of a consulting firm such as Accenture than a subscription software company like Salesforce or ServiceNow.
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