TLDR
- Palantir CEO Alex Karp criticized Michael Burry for betting against Palantir and Nvidia through put options
- Burry’s Scion Asset Management held put options worth $912 million against Palantir and $187 million against Nvidia as of September 30
- Palantir shares dropped 8% on Tuesday despite beating third-quarter earnings estimates and providing positive guidance
- Karp called the bets “bats— crazy” and suggested Burry might be trying to exit his position without appearing foolish
- Burry declined to comment on Karp’s remarks and his current positions remain unknown
Palantir CEO Alex Karp publicly criticized investor Michael Burry after regulatory filings showed put options against both Palantir and Nvidia. The confrontation highlights tensions between AI company leaders and market skeptics.
Burry’s hedge fund, Scion Asset Management, disclosed put options with a notional value of $912 million against Palantir and $187 million against Nvidia as of September 30. The filing did not include strike prices or expiration dates for these contracts.
Karp spoke to CNBC’s “Squawk Box” on Tuesday about the positions. He called the bets “bats— crazy” and questioned the logic behind shorting two profitable AI companies. “The two companies he’s shorting are the ones making all the money, which is super weird,” Karp said.
The Palantir CEO suggested Burry was effectively betting against artificial intelligence itself. Karp described the strategy as targeting “chips and ontology,” referring to Nvidia’s hardware and Palantir’s data integration approach.
Palantir Stock Drops Despite Strong Earnings
Palantir shares fell 8% on Tuesday despite the company beating Wall Street estimates for its third quarter. The software company also provided positive guidance for future performance. Investors have shown increasing concern about high valuations in AI-related stocks.
Palantir stock had risen 173% for the year before Tuesday’s trading session. The company currently trades at a forward price-earnings ratio of 228. Nvidia shares also declined 4% after gaining over 50% this year.
Karp accused short sellers of market manipulation during his CNBC interview. “We delivered the best results anyone’s ever seen,” he said. The CEO questioned whether Burry was actually holding short positions or trying to exit them.
Questions About Current Positions
The regulatory filing only shows positions as of September 30. Burry may have adjusted his portfolio since then. When CNBC contacted him for comment on Karp’s remarks, Burry declined to respond.
Burry posted a cryptic message on X last week to his 1.3 million followers. “Sometimes, we see bubbles. Sometimes, there is something to do about it,” he wrote. The post hinted at renewed caution about market conditions.
The investor became famous for betting against mortgage-backed securities before the 2008 financial crisis. His trade was documented in Michael Lewis’ book “The Big Short” and the subsequent Oscar-winning film.
Karp said he planned to celebrate when short sellers are proven wrong. “I do think this behavior is egregious and I’m going to be dancing around when it’s proven wrong,” he stated during the interview.
The CEO suggested the disclosed positions might not represent actual short bets. “It’s not even clear he’s shorting us. It’s probably just, ‘How do I get my position out and not look like a fool?'” Karp said. He also questioned the ethics of investors who publicly disclose such positions.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
