Palantir Technologies stock declined more than 6% on Friday. The sell-off followed the release of a 10,000-word newsletter from Michael Burry, the investor famous for predicting the 2008 housing market crash.
Burry’s report expressed concerns regarding the broader artificial intelligence investment cycle and the high valuations of AI-related companies. This critique directly impacted investor sentiment toward Palantir.
Analysts at DA Davidson maintained a neutral rating on the company despite the sharp price drop. The firm stated that Burry’s extensive report provided no new fundamental reasons for concern regarding Palantir. However, the analysts did agree that the company's shares currently trade at an expensive valuation.