Shares in Palantir Technologies Inc. (NASDAQ:PLTR) declined 6.56% in pre-market trading on Tuesday. The software giant posted upbeat third-quarter results on Monday, but saw bearish bets from large investors.
Michael Burry Turns Bearish
Billionaire Michael Burry has warned that the ongoing AI surge could echo the dot-com bubble of 2000. His firm, Scion Asset Management, disclosed more than $1 billion in bearish put options against AI-focused stocks, including Nvidia Corp. (NASDAQ:NVDA) and Palantir, with five million put options placed on the latter.
Several market analysts have issued warnings about potential overvaluation in certain sectors, particularly in the AI space. Mohamed El-Erian, the chief economic adviser at Allianz, warned that investments in some AI-related names could “end up in tears”.
Results Beat, Upbeat Forecast
Palantir’s Q3 revenue was $1.18 billion, exceeding the estimated $1.09 billion. The adjusted earnings per share (EPS) for the quarter were 21 cents, surpassing the anticipated 17 cents.
The total revenue for the quarter increased by 63% year-over-year, with U.S. revenue growing by 77% to $883 million. The U.S. Commercial revenue saw a 121% year-over-year increase to $397 million, and the U.S. Government revenue jumped by 52% year-over-year to $486 million.
The company, which builds analytics tools for large companies and government agencies, said it expects revenue of about $1.33 billion for the current three-month period, exceeding the $1.09 billion expected by analysts, according to Benzinga Pro.
Price Action: On a year-to-date basis, Palantir stock surged 175.54%, as per data from Benzinga Pro. At the time of writing, the stock is trading at $191.82.
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