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Michael Burry's Palantir Puts: Is He Right, Or Just a Broken Clock Again?
Alright, let's get one thing straight: Michael Burry's back, and he's betting big against Palantir. Five million puts, according to Whale Wisdom. Five. Million. Puts. On PLTR.
The Big Short Strikes Again?
The guy who called the housing crisis – the guy Christian Bale played – is now screaming about an AI bubble, comparing it to the dot-com bust. He even dusted off his "Cassandra Unchained" moniker. Is this legit, or is Burry just trying to stay relevant? I mean, the dude's been wrong before, right? Even Elon Musk called him a "broken clock" at one point. And let’s be real, Palantir is trading at all-time highs. So, what gives?
He's waving around charts comparing cloud growth from way back when to today, and another chart that looks like a plate of spaghetti showing all the AI deals between Nvidia, OpenAI, Oracle and everyone else. And then there's the AI capex chart that supposedly matches the tech spending from the late 90s.
It’s like he's trying to scare us with PowerPoint presentations from 2000.
Look, I get it. AI is hyped. Maybe overhyped. But is it really Tulip Mania 2.0? Are we all gonna be lining up to sell our kidneys for a slightly faster large language model? I don't know, man. Maybe.
And what’s with the Star Wars reference? "These aren't the charts you are looking for." Seriously? Is this financial analysis or a Reddit thread?
Palantir: Savior or Overhyped Hype Machine?
Palantir. The company that's either saving the world with its data analytics or just selling snake oil to governments. I can't ever decide which. Their stock is soaring, but is it based on real, sustainable growth, or just the AI pixie dust everyone's snorting these days?
Burry's not the only one raising eyebrows. There's a ton of buzz around AI, and Nvidia is the poster child for this supposed boom. Their shares have gone parabolic, rocketing up over 1,200% since the start of 2023. That's insane! But maybe justifiable? I mean, they're selling the picks and shovels in this AI gold rush.
But Palantir? What exactly are they selling, besides a vague promise of "data-driven insights"? Are they really revolutionizing anything, or are they just really good at landing government contracts? I don't know. And frankly, I’m not sure anyone really does. According to a recent article, Michael Burry Is Super-Bearish On Palantir — With 5 Million Puts - Palantir Technologies (NASDAQ:PLTR).
He also bought calls on Halliburton and Pfizer. Halliburton? What year is it? Are we really betting on oil and… Pfizer? What's next, Blockbuster?
He closed positions in Estee Lauder, Regeneron, MercadoLibre, and UnitedHealth Group. So… makeup, medicine, South American e-commerce, and healthcare. Sounds like he’s selling everything except AI.
Offcourse, he could be right. Maybe the AI bubble is about to burst, and Palantir will be collateral damage. Maybe we're all gonna wake up one day and realize that AI is just a fancy chatbot and not the second coming of Skynet.
Then again, maybe I'm the crazy one here. Maybe Burry's a genius, and I'm just too blind to see the impending doom. It's happened before.
So, What's He Actually Saying?
Burry updated his profile to "Cassandra Unchained," a reference to the Greek priestess cursed to make accurate prophecies but never to be believed. Subtle. Real subtle. And he changed his bio to: "One ready to share what I know."
Okay, Mr. Know-It-All, tell us what you really know. Are you just trying to pump your book sales or something? What's the angle here?
His pinned post said, "Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play."
Translation: "I see a bubble, I'm gonna bet against it, and you should too. Or, you know, just stay out of the casino altogether."
This Time, He's Officially Lost It
Alright, let's be real. This feels less like informed investing and more like a grumpy old man yelling at clouds. Burry's made some brilliant calls, no doubt. But this whole "AI bubble" thing, the cryptic tweets, the Cassandra act… it's all a bit much, ain't it? Maybe he's right, maybe he's wrong. But either way, I'm starting to think the "only winning move" might be to ignore him completely.