Michael Barry attends the New York premiere of ‘The Big Short’ at the Ziegfeld Theater in New York on November 23, 2015.
Andrew Toth | Film Magic | Getty Images
Michael Barry continues to place a bearish bet on Palantir Technologies even after President Donald Trump’s public support helped push the stock higher.
The “Big Short” investor said in a Substack post on Friday that he continues to hold long-term put options on the artificial intelligence software company. Burley said he started betting on the company in the fall of 2025 and has rolled his position over and over again.
“I currently own a 50 put with a strike of June 17, 2027 and a 100 put with a strike of December 19, 2026. I will not sell these today,” Barry wrote.
Barry’s comments came after President Trump praised Palantir in a post on Truth Social on Friday, pushing the stock up from its intraday lows. Still, the stock is on track for a weekly decline of about 13%, taking its 2026 loss to about 28%.
“Palantir Technologies (PLTR) has proven itself to be superior in combat capabilities and equipment,” President Trump wrote. “Ask the enemy!!!”
The well-known investor said the stock price has fallen since reaching a high of around $200 last year and remains “significantly overvalued.” Berry acknowledged the potential for short-term upside, but insisted the company’s fundamental value was less than half its current value.
“Trump’s post drove the stock up after it fell 18% over the past three days. This could be where the stock gets some wind. It’s selling along with the software stocks. As I said, I continue to hold the puts because I believe the fundamental value of this company is well below $50 per share.” Palantir traded at about $127 per share on Friday.
Some see Palantir as a beneficiary of the Iran war, as the software and services vendor does a lot of business with the U.S. military and intelligence community.
During the second Trump administration, the company won new government contracts and deepened its ties with the Pentagon, but CEO Alex Karp has maintained regular engagement with the administration despite early tensions.
Last year, Mr. Berry’s former hedge fund, Scion Asset Management, disclosed bearish positions on Palantir and AI darling Nvidia, prompting a furious reaction from Mr. Karp, who called Mr. Berry’s bets “super weird” and “insane.”
Never miss the most trusted news moments in business news when you choose CNBC as your preferred source on Google.
Source link
