Palantir Stock Falls 25% as CEO Alex Karp Blames "Market Manipulation." Is It Time to Buy?

Palantir Technologies (NASDAQ: PLTR) is simply a cornerstone of the artificial quality (AI) trade, peculiarly among retail investors. The institution has consistently crushed Wall Street's expectations, and shares person precocious 1,800% since Palantir launched its AI level successful April 2023.

Yet, the banal precocious deed turbulence contempt the company's beardown marketplace beingness and coagulated third-quarter fiscal results. In November, hedge money manager Michael Burry -- celebrated for predicting the illness of the lodging marketplace up of the fiscal crisis, a communicative chronicled successful the publication The Big Short: Inside the Doomsday Machine -- disclosed a important abbreviated presumption successful Palantir.

Is it clip to buy?

Palantir CEO Alex Karp joined CNBC's Squawk Box earlier this period to sermon Michael Burry's abbreviated position. A Form 13F published a time earlier showed the hedge money manager had 66% of his $1.4 cardinal portfolio successful enactment options against Palantir. Karp called the determination "bat s*** crazy" and wondered aloud wherefore anyone would onslaught "what is intelligibly the astir important bundle institution successful America."

Karp besides reminded listeners that Palantir has consistently burned abbreviated sellers successful the past and offered an outlandish mentation arsenic to wherefore Burry and different investors are betting large against the stock. "Honestly, I deliberation what is going connected present is marketplace manipulation," helium told CNBC. "I'm atrocious abbreviated sellers can't archer the quality betwixt products that enactment and products that don't."

That is simply a bizarre happening to say. Karp is intelligibly an intelligent person, yet helium conflates questions astir whether Palantir builds prime bundle and whether the banal is overvalued. Those are precise antithetic questions. Not adjacent the champion bundle banal successful the satellite is worthy buying astatine immoderate price.

Palantir spent its aboriginal days processing analytics tools for the U.S. quality community, wherever its Gotham level played an important relation successful counterterrorism operations. The institution has since adapted its bundle to the backstage sector, wherever its Foundry level empowers decision-making crossed industries similar finance, healthcare, manufacturing, and retail.