Okay, so Palantir's CEO Alex Karp is calling Michael Burry "bats--- crazy" for shorting his company and Nvidia. My first thought? Pot calling the kettle black, maybe? I mean, Karp's always been a bit...eccentric. Remember that weird video of him chopping wood shirtless? Yeah, that's the guy we're talking about.
He went on CNBC, ranting about how Burry's shorting "chips and ontology" is insane. Ontology? Give me a break. It's AI software, let's be real. It's not like Burry's shorting food or something useful. And Karp saying Burry's shorting AI? Please. Burry's betting against specific companies with sky-high valuations that happen to be in the AI space. There's a difference.
Palantir's stock is up 173% this year, but with a forward price-earnings ratio of 228? That's insane! It's like paying $50 for a cup of coffee because it might taste good. Maybe it will, maybe it won't, but I ain't paying that much upfront. Nvidia's also taken a hit, down 4% after a massive run. People are getting nervous, and for good reason.
Karp claims their results are the "best anyone's ever seen." Really? Anyone? Has he checked with Apple, Microsoft, or, I don't know, every other profitable tech company that's been around for more than a decade? I'm not saying Palantir's a scam, but that kind of hyperbole makes me instantly suspicious.
And then he throws in the "market manipulation" card. Seriously? Is that the best he's got? It's like when a kid loses a game and screams that the other guy cheated. Maybe, just maybe, the market is correcting itself after months of AI hype.
Let's not forget who we're talking about here. Michael Burry called the 2008 financial crisis. The Big Short, remember? The guy knows a thing or two about spotting bubbles. Sure, he's been wrong before – everyone is – but his track record gives him some serious credibility.
Burry posted something cryptic on X last week: "Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play." What does it mean? Who knows. But it sounds an awful lot like he thinks the AI hype is overblown.
Karp's response? "It's probably just, 'How do I get my position out and not look like a fool?'" Oh, so now Burry's just trying to save face? Come on. If Burry wanted to quietly exit his position, he wouldn't have disclosed it in a filing. He knew this would cause a stir. This is a guy who made a fortune betting against the grain. He thrives on controversy.
Details on the strike prices and expiration dates aren't available, offcourse. That would actually give us insight into Burry's strategy. But we don't get that.
Karp says he'll be "dancing around when it's proven wrong." That's a bold statement. But what if he's the one who's wrong? What if Palantir's valuation comes crashing down to earth? Will he still be dancing? I doubt it. He'll probably blame the shorts, the media, or anything but his own company's fundamentals.
Then again, maybe I'm being too harsh. Maybe Karp genuinely believes in his company and is just trying to defend it. But let's be real, CEOs are paid to be optimistic. It's their job to pump up the stock, even if it means bending the truth a little bit. It's like a politician promising to solve all our problems – you know it's BS, but you still listen anyway. According to a recent CNBC interview, Alex Karp blasts 'Big Short' investor Michael Burry as 'bats--- crazy' for bets against Palantir, Nvidia.
