Palantir Stock Heads For Worst Week In 2 Months: Burry’s Deleted Posts Still Echo, But Retail Is Snapping Up Every Dip

• Palantir shares declined 7.3% on Thursday.
• Traders highlighted Palantir's strong financial position and growth rate, shrugging off Burry’s thesis and the recent stock weakness.
• Stocktwits sentiment for PLTR climbed higher in the ‘extremely bullish’ zone.

Palantir Technologies Inc.’s shares dropped for a second straight session on Thursday after ace investor Michael Burry indicated that the data analytics company might be losing enterprise software market share to Anthropic. Still, retail traders turned even more optimistic, appearing to dismiss Burry’s thesis.

Palantir shares dropped 7.3% on Thursday, their sharpest slide in over two months, setting them on course for their worst week in more than two months. The stock has declined 13% in two days and is now down nearly 27% year-to-date.

“The Big Short” investor on Wednesday said that “Anthropic is eating Palantir’s lunch,” highlighting the AI startup’s rapid growth in its annual revenue run-rate from $9 billion to $30 billion. Burry has since deleted those posts from X and his Substack as criticism mounted that his view was flawed and primarily served to support his own market positions.

Several traders argued that Anthropic and Palantir operate in different niches and that comparing them is unfair. Anthropic builds AI models, while Palantir builds software platforms (AIP, Foundry) that enable large organizations to use those models with their own private data.

Retail Grows More Bullish On PLTR

As the shares slid, retail sentiment for PLTR on Stocktwits inched higher, reaching ‘extremely bullish’ (90/100) as of late Thursday.

“$PLTR do investors look at the financials or just listen to a known short seller spewing shit,” said a trader. “PLTR is blowing out earnings, growing like a weed and its value is way more than $130. I’m buying.”

Another wrote: “I’m so tired [of] hearing about Anthropic beating Palantir because it makes no sense. At a high level, Palantir Technologies complements models from OpenAI and Anthropic because they solve different layers of the same stack. Palantir gives context that an LLM lacks. LLMs are great at advice and Palantir is built for execution. In short, Palantir turns a chatbot into a decision engine. The end.”

Palantir and Anthropic offer an integrated platform to the defense sector. Palantir’s Project Maven integrates Anthropic’s Claude models via its AI Platform (AIP) to analyze defense data and generate intelligence insights within operational workflows.

A number of traders also voiced frustration with Burry and suggested that federal regulators investigate him for market manipulation.

Burry is short on Palantir, a position he disclosed last September, and has repeatedly raised concerns over the company’s business, including alleged inflated accounting and high spending on private jets by its chief executive, Alex Karp.

Palantir’s Business Booms, Analysts Take Note

Although Palantir’s stock has largely traded in a see-saw manner this year, several business updates point to growing momentum for the company’s software. The company’s fourth-quarter sales rose 70%, including a 93% growth in the U.S. business, and profits nearly doubled, according to results published in early February.

More recently, Palantir extended its partnership with auto-maker Stellantis for another five years, as well as with consultancy Bain & Co. Reports suggest Palantir is one of the main firms working on the core software that will run the U.S.’s upcoming Golden Dome missile defense system. 

Rosenblatt, which reiterated its ‘Buy’ rating on shares last month, said the Golden Dome contract could be worth "many billions of dollars" for Palantir in the first phase alone. Meanwhile, Benchmark initiated coverage on PLTR with a ‘neutral’ rating, arguing that the stock’s high valuation and the company’s tough financial comparisons justify the view. 

Anthropic’s March Pressures SAAS Stocks

Meanwhile, Anthropic appears to be going from strength to strength. Besides recently reporting the sharp jump in its ARR, it's been launching new AI tools at a rapid pace. 

In the last few days, the startup rolled out Claude Managed Agents, designed to streamline, automate, and increase the use of its tools in workflows, and a new AI model with application in cybersecurity.

Consistent with past trends, shares of major software companies such as Intuit, Autodesk, and Adobe, as well as cybersecurity firms CrowdStrike and Palo Alto Networks, dropped sharply. 

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