'Big Short' Investor Michael Burry Targets Palantir Over 'Covert Smear' Claims, Warns Of Over 50% Stock Collapse

The ‘Big Short’ investor Michael Burry has intensified his campaign against Palantir Technologies Inc. (NASDAQ:PLTR), combining allegations of unethical corporate behavior with a technical forecast predicting a massive stock collapse.

Allegations Of ‘Covert Smear’ Campaigns

The famed investor recently took to X to challenge Palantir's corporate ethics, calling for evidence regarding alleged “covert smear campaigns” conducted by the company.

Burry used a sarcastic post about “urine drones” to ask for tips from anyone with evidence of Palantir's alleged smear campaigns.

The X post highlighted an ongoing controversy involving the UK’s National Health Service (NHS). Burry shared reports that the NHS is probing whether Palantir breached contract terms by allegedly hiring a digital marketing agency to solicit influencers to counter public criticism.

Jo Maugham, Executive Director of the Good Law Project, was quoted in the report shared on Burry’s X post, stating, "Palantir is not – and frankly never has been – a company that can be trusted with this nationally important contract."

Technical Breakdown And 58% Downside

Beyond the ethical critiques, Burry's financial thesis suggests a staggering decline for the stock. Sharing a technical analysis on Feb. 10, 2026, Burry identified a classic "Head & Shoulders" reversal pattern on the $PLTR chart.

The analysis points to a “Next Support” level near $80, with an ultimate "Landing Area" between $50 and $60. With the stock recently trading around $131.41, a drop to the $60 mark would represent a 54.34% collapse.

This aligns with Burry's clarified short position, where he previously noted, “I bought 50,000 of these things… Each of those doodads let me sell $PLTR at $50 in 2027.”

Valuation Vs. Innovation

While Palantir CEO Alex Karp has dismissed Burry's bearishness as “BatS—t Crazy,” citing the company’s strong revenue growth, Burry remains steadfast.

He has categorized high-flying tech stocks like Palantir as “frauds of the modern era,” warning that the “AI bubble” is losing structural integrity regardless of current earnings performance.

PLTR Underperforms In 2026

Shares of PLTR have fallen by 21.71% year-to-date, while the Nasdaq 100 was down 1.88% in the same period. The stock was down 24.49% over the last six months and up 5.45% over the year. On Friday, the stock closed 1.74% higher at $131.41 per share.

PLTR maintains a weaker price trend over the long, short and medium terms, with a solid growth score, as per Benzinga's Edge Stock Rankings.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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