Palantir and the Price of Optimism

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It’s always amusing, isn’t it, how quickly gravity reasserts itself? For a while there, Palantir Technologies – Palantir Technologies (PLTR 5.09%) – seemed determined to defy it. A stock that, frankly, always felt a little… precarious. Like a stack of porcelain cats balanced on a Roomba. And now, Thursday brought a correction. A 5% dip, they say. Which, in stock terms, is less a fall and more a polite lowering of expectations.

The cause, predictably, is someone pointing out the obvious. Michael Burry, the man who correctly predicted the 2008 housing crisis, has taken a dislike to Palantir. It’s a bit like being scolded by your history teacher. You knew the test was coming, you just hoped they wouldn’t call on you.

The Big Short, Again

Burry, you’ll recall, made a tidy sum betting against the housing market. A movie was made. He’s a bit of a celebrity now, which is odd. It’s like your accountant suddenly starring in a reality show. He’s released a 10,000-word critique of Palantir, suggesting it could fall 66%. Honestly, who has time to read a 10,000-word critique of a stock? I struggle to read the shampoo bottle.

The range of possible outcomes, from $21 to $146, is wonderfully vague. It’s the financial equivalent of saying, “It might rain, it might not.” He seems convinced their “winning streak” won’t last. A bold prediction, considering most streaks end eventually. It’s just… so predictable.

Analysts at D.A. Davidson, naturally, disagree. They’ve reaffirmed their neutral rating and $180 price target. They read the 10,000 words and found… nothing new. It’s like reading a particularly long email from someone who hasn’t quite grasped the concept of conciseness. They point out Burry offers no “new evidence.” Which, let’s be honest, is often the case. It’s always the same arguments, just repackaged with a slightly more alarming font.

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They argue Palantir is growing faster than other software companies, has strong cash flow, and therefore, Burry is wrong. It’s a perfectly logical argument. And yet, the stock is trading at 202 times earnings. Which is… ambitious. It’s like buying a house with Monopoly money and hoping the bank doesn’t notice.

There’s a certain appeal to a stock that’s so aggressively priced. It suggests unwavering confidence, a refusal to acknowledge the basic laws of economics. I’ve argued before that some stocks can justify their valuations. I’m starting to think I was being optimistic. Or possibly delusional.

Honestly, it’s all a bit exhausting. The endless analysis, the conflicting opinions, the constant pressure to pick the “winning” stock. Sometimes, I just want to invest in something tangible. Like a really good armchair. Or a lifetime supply of hand sanitizer. Something that will actually improve my quality of life, regardless of market fluctuations.

Nothing new to see here, folks. Just the usual dance of hope and disappointment. And a stock that’s slowly, but surely, coming back to earth.

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2026-02-12 22:15