Michael Burry Reiterates Short Position on Palantir Stock in 2026

TLDR

• Michael Burry says his bearish position on Palantir stock is unchanged and calls it a “sand castle.”
• Burry sees a head-and-shoulders topping pattern on Palantir’s chart, a technical signal often linked to reversals.
• Palantir shares are down 14% year-to-date and were falling a further 2.6% in premarket trading Tuesday.
• Despite Burry’s warning, 19 of 31 Wall Street analysts still rate the stock a Buy or higher.
• Palantir reported strong Q1 earnings on May 4 and raised its full-year outlook, but shares still fell after the results.

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Michael Burry, the investor known for predicting the 2008 housing crash, has doubled down on his short position in Palantir Technologies. In a new post on his Substack, Burry said the stock is at a “crossroads” and showed no signs of changing his bearish view.

Burry first disclosed his short position in Palantir late last year. Now, heading into June 2026, he says the thesis remains the same.

He described Palantir’s chart as showing a head-and-shoulders-type topping pattern. This is a technical formation that can suggest a stock’s upward momentum is fading.

“Palantir trades at roughly 16 times its intrinsic value based on my assumptions,” Burry wrote. “It is a sand castle, supported for now by the AI applications narrative.”

He added that the chart “reflects the waxing and waning of extremely bullish psychology” around the artificial intelligence software company.

What the Chart Pattern Means

A head-and-shoulders top forms after a strong rally. Buyers gradually lose momentum, and the pattern completes when the stock breaks below a key support level known as the neckline.

For technical traders, a confirmed break below that level is often treated as a sell signal, pointing to further losses ahead.

Palantir shares were trading around $152 heading into the week, but dropped 2.6% in premarket trading Tuesday to around $148. The stock has also fallen 5.3% in the prior session.

Palantir Technologies Inc., PLTR

Palantir is down around 14% year-to-date in 2026, though it is still up more than 14% over the past 12 months. Shares had recently bounced from the $130-$140 range and were testing resistance near $150-$160.

Earnings Were Strong, But Shares Still Fell

Palantir reported first-quarter results on May 4 that came in above expectations. The Florida-based data analytics company also raised its full-year revenue and profit forecasts.

Despite the strong report, the stock declined in the days that followed.

The company has benefited from its position in defense technology and its exposure to the U.S.-Iran conflict, which provided some support. But Palantir has still been caught up in a broader selloff across software stocks.

Investors are now looking to Palantir’s annual shareholder meeting on Wednesday for any fresh clues about the company’s direction.

Wall Street has not moved to Burry’s side. Of 31 analysts covering the stock, 19 rate it a Buy or higher, 10 rate it a Hold, and just two rate it a Sell or lower.

The average analyst price target is $183.73, implying around 21% upside from the stock’s last close.

Burry’s track record gives weight to his warnings, but for now the majority of the market is not following his lead.