Bull v Bear: Who’s right about Palantir?

“Big Short” investor Michael Burry says he’s still bearish on defence tech company Palantir Technologies, posting on Substack that he’s still holding long-dated put options on stock. 

“I now own the June 17 2027 Strike Price 50 Puts and the Decembers 19, 2026 Strike Price 100 Puts. I am not selling these today,” he wrote. (read about PLTR options strategies)

His comments came after President Trump gave the stock lift with a post on his Truth Social account on Friday. “Palantir Technologies (PLTR) has proven to have great warfighting capabilities and equipment,” he posted. “Just ask our enemies!!!”

Nevertheless, PLTR suffered a weekly drop of more than 13%, before rallying Monday, taking its YTD decline to around 21%. Palantir closed Monday's session at $132.37.

“Trump’s post rallied the stock after the stock had fallen 18% the last three days. The stock may catch a wind here. It has been selling off with software stocks. As mentioned, I continue to hold the puts, as I believe the fundamental value of this company is well under $50/share,” added Burry, who first disclosed bearish bets against Palantir – along with Nvidia – in the autumn of 2025.

It’s all about Anthropic

Burry believes Anthropic “is eating Palantir’s lunch”, as he wrote last week in a now-deleted post on X. “Anthropic went from $9B to $30B in months, it took $PLTR 20 years to get to $5 Billion,” he added.

Almost one in three US businesses paid for Anthropic tools last month, according to data from payments group Ramp,amid surging interest in its suite of Claude Code products and assorted plug-ins that have rocked a large part of the software sector this year.

Anthropic’s rapid pace of growth continued last month, growing from 24.4% to 30.6% of businesses. OpenAI still leads with 35.2% of businesses at this pace, “Anthropic will overtake OpenAI within the next two months”, according to Ramp.

Last week Anthropic announced that will limit the rollout of its Claude Mythos tool to a select group of companies as part of new cybersecurity initiative called Project Glasswing. The reason for the limited launch is the risks of the tool being used by bad actors. Claude Mythos "has already found thousands of high-severity vulnerabilities, including some in every major operating system and web browser."

This sent fresh shockwaves through some of the exposed software and cybersecurity stocks last week. 

For Palantir, the risk is double-edged as it not only faces competition from Anthropic but it also uses Claude in its tools. Palantir CEO Alex Karp has vowed to “phase out” Anthropic’smodels after the Pentagon black-listed Anthropic for voicing concerns about the use of its tools for autonomous weapons and surveillance.

Zero sum?

The question of whether the rise of Anthropic (and other AI companies for that matter) necessarily threatens Palantir (and other software stocks for that matter). This is the whole AI is killing software narrative that has plunged a host of software stocks this year.

But according to Wedbush, Anthropic’s growth does not come at the expense of PLTR's business as the company continues to accelerate both its US commercial and government businesses - US commercial revenues +137% y/y and US government +66% y/y, for instance. Palantir reported Q4 2025 revenue of $1.407 billion, up 70% year on year and up 19% quarter on quarter, also revenue growth continues to accelerate with the y/y growth rate almost doubling from +36% in Q4 2024.

The idea that Anthropic is eating Palantir’s lunch is the is the “wrong take and fictional narrative”, says Wedbush analyst Dan Ives.

“Palantir is at the epicenter of leaders in the AI Revolution while its AIP product moat remains unmatched in our view," he argued "The data-driven moat by Palantir is around the data and its ontology…this is NOT being disrupted by Claude…if anything, it's accelerated on the enterprise."