Famed ‘Big Short’ investor Michael Burry on Tuesday spotlighted Palantir Technologies Inc‘s (NASDAQ:PLTR) prolonged decline as shares remained under pressure following a sharp retreat from their highs.
Palantir’s Slide Deepens
Burry in a post on X said “rock rock til you drop” along with a chart noting that Palantir had made a “new lower low” after a “low volume top.”
Palantir traded near new 52-week lows following a sharp selloff across software and artificial intelligence stocks on Tuesday.
Burry further highlighted that volume “fell into the top and still has not recovered as it falls,” underscoring the stock’s prolonged downtrend.
AI Favorite Faces Valuation Reset
Burry’s post comes as investors reassess some of the market’s biggest artificial intelligence winners after years of outsized gains.
Palantir was one of the biggest beneficiaries of the AI rally, supported by strong adoption of its Artificial Intelligence Platform and government software business.
The stock has since come under pressure as investors questioned whether richly valued software companies can sustain the growth needed to justify premium valuations.
Shares of Palantir are down roughly 30% year-to-date and 18.52% lower over the past year.
Tech selloff hits AI favorites
Tuesday’s technology selloff was sparked by sharp declines in South Korean memory-chip stocks, with Samsung Electronics and SK Hynix each losing more than 12%. Both stocks recovered some ground on Wednesday, as Samsung Electronics climbed roughly 10% and SK Hynix advanced nearly 1% in Seoul.
The selloff triggered a broader retreat in AI-linked equities across the U.S. and Europe, adding pressure to software names such as Palantir as investors pulled back from some of the market’s biggest technology winners.
Price Action: PLTR closed 2.34% lower on Tuesday at $116.70 and fell further 2.29% in after-hours trading.
Benzinga edge rankings indicate PLTR has a Momentum score in the 5th percentile and a Growth score in the 97th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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