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  • 9 months ago
Palantir shares fell over 8% in premarket trading as investors questioned its $488 billion valuation amid AI market exuberance. Michael Burry’s Scion Asset Management disclosed bearish bets on Palantir and Nvidia, warning retail traders about inflated prices. CEO Alex Karp admitted the stock is in a “nosebleed zone” despite record growth.

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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Palantir Technology shares fell as much as 8.1% in pre-market trading on Tuesday
00:06as investors questioned its $488 billion valuation
00:10and the sustainability of the AI rally, according to Bloomberg.
00:13Michael Burry's scion asset management disclosed bearish bets on Palantir and NVIDIA
00:17through put options that gained value as their shares fall.
00:21Burry, known for the big short, bore retail investors on X about growing market exuberance,
00:25advising that sometimes the safest move is to avoid participating.
00:28Analyst Gil Lurie said Palantir's valuation is disengaged from fundamentals,
00:33signing its rapid growth and unprecedented market levels.
00:36CEO Alex Karp called the company's performance arguably the best results
00:39any software company has ever delivered,
00:41and acknowledged that its valuation had reached a nosebleed zone.
00:45Palantir's stock surged over 170% this year to a record high,
00:49giving you the highest price-to-sales ratio in the S&P 500 at 85.
00:53For all things money, visit Benzinga.com.
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