Michael Burry bets $1 billion against Palantir stock 🤯

@sammystockz

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Why it worked

The video leverages a high-profile investor's bearish bet on a popular stock, creating immediate intrigue and a sense of urgency. It contrasts this with positive recent news, setting up a conflict that encourages viewers to understand Burry's reasoning.

Summary

Michael Burry has reportedly bet $1 billion against Palantir stock, predicting a 99% crash to $1 per share. This comes despite Palantir's recent strong earnings report and a positive price target from Bank of America. Burry's concerns stem from the company's massive AI infrastructure spending and its stock-based compensation to employees, which he believes is diluting shareholder value.

Structure

1Michael Burry's $1 billion bet against Palantir stock.
2Palantir's recent strong earnings and positive analyst outlook.
3Burry's concerns about AI spending and stock-based compensation.
4The potential for a significant stock price drop based on past shorting activity.

Product placement

Palantir: (a) ACTS - its interface is operated, it generates or edits something, a visible result comes from it, or someone says what it does for them. Removing it would change what happens in the video. (b) merely APPEARS - a corner watermark, a channel or studio logo, an end card, a credit, a name on clothing, a repost stamp. Removing it would NOT change what happens in the video. Palantir is the subject of the video, and its stock performance is being discussed. X.com: (b) merely APPEARS - a corner watermark, a channel or studio logo, an end card, a credit, a name on clothing, a repost stamp. Removing it would NOT change what happens in the video. Bank of America: (b) merely APPEARS - a corner watermark, a channel or studio logo, an end card, a credit, a name on clothing, a repost stamp. Removing it would NOT change what happens in the video. Michael Burry: (a) ACTS - its interface is operated, it generates or edits something, a visible result comes from it, or someone says what it does for them. Removing it would change what happens in the video. Michael Burry is the subject of the video, and his actions are being discussed.

Original caption

Do you agree with Michael Burry on this? #stocks #investing #news #palantir

More from @sammystockz

On-screen text

Sammy Stockz @sammystockz X.com Michael Burry bets $1 billion against Palantir stock 🤯 short on Palantir stock, saying the company is extremely overvalued. His price target: $1 per share (99% crash) 🧵 MICHAEL BURRY JUST THAT PALANTIR STOCK WILL CRASH 99% WILL CRASH 99% A SHARE LET ME EXPLAIN Palantir reported a huge beat on Q2 earnings and revenue. The stock pumped 30% in a single day and 40% that week to $175. Bank of America set a price target of $255/share, implying a massive 30% upside. Palantir Technologies $164.02 $38.36 (30.53%) PALANTIR JUST REPORTED THE SECOND QUARTER BEATING ON BOTH EARNINGS AND REVENUE PUMPED 40% IN JUST OF AMERICA EVEN INCREASED ITS PRICE TARGET TO $255 AND THINGS COULD GOING BETTER FOR PALANTIR INVESTORS UNTIL MICHAEL BURRY CAME ALONG The CEO Alex Karp said the company will continue to grow revenue over 100% in the next 18 months. Palantir supposedly expects quarterly revenue to skyrocket to $5.64 billion by the end of 2027. Michael Burry didn't agree. HAD A PROBLEM AFTER THE C ALEX KARP SAID THAT HE EXPECTED OVER 100% IN THE NEXT 18 MONTHS. PROJECTING THAT THE $5.64 BILLION IN QUARTERLY REVENUE OF 2027 AND NOT AGREE WITH THIS Michael Burry opened a billion dollar short on $PLTR stock following earnings for 2 reasons. The first reason is that the company has committed over $3 billion to AI infrastructure spending, tripling in under a year. Palantir is taking on heavy risk as they bet AI will increase their earnings drastically. SO HE OPENED A BILLION DOLLAR SHORT POSITION ON THE STOCK REASONS THAT NO ONE WAS TALKING ABOUT HIS FIRST REASON IS THE COMPANY TRIPLED ITS A I INFRASTRUCTURE SPENDING TO OVER $3 BILLION TAKING ON MASS TO DO THIS AND MICHAEL BURRY THEM GETTING A RETURN FROM IT REASON HE'S SHORTING EVEN WORSE Burry is also worried about its stock based compensation to employees. Palantir issued 31.3M shares to staff worth $5 billion last year. This is 6x their actual reported stock based compensation expenses. Michael Burry sees this as a huge problem, lying to shareholders and diluting their stock. PALANTIR ISSUED 31.3 MILLION SHARES TO EMPLOYEES WORTH $5 BILLION LAST YEAR A LOT OF MONEY REALLY BAD BECAUSE IT'S SIX TIMES THE STOCK BASED COMPENSATION EXPENSES THEY ACTUALLY REPORTED TO SHAREHOLDERS IS DILUTING THEIR SHAREHOLDERS TELLING THEIR INVESTORS ABOUT IT Last time Burry shorted, the stock dropped over 50%. Do you think it will happen again? MICHAEL BURRY SHORTED PALANTIR IT DROPPED 50% IN THE FOLLOWING MONTHS THIS WILL HAPPEN AGAIN