Palantir Technologies could see its stock price retreat by 40-60%, according to investor Michael Burry. The Big Short, known for his market calls, highlighted a bearish chart formation that suggests sustained downward pressure may be building on the shares.
Burry pointed to technical signals in Palantir’s stock movements, publishing his post on X. He identified a head-and-shoulders pattern—commonly viewed by traders as signifying the potential end of a rally—capped by a peak at the record high of $207 reached in November 2025.
The price level near the mid-$140s was marked as a “neckline,” and Burry indicated that a substantial drop below this threshold could confirm the bearish trend. He referenced two support zones: $83–$84, representing a decline of about 42% from the recent close of $135.68 and nearly 60% from the all-time high; and a lower “landing area” between $54–$55, which would equate to a more severe 60% fall from the latest close and a 74% drop from peak levels.
Despite strong fourth-quarter results that briefly lifted the stock, Palantir shares are currently trading around 25% beneath their November highs. Burry noted in his post that he was “working on something $PLTR,” a possible signal of further activity beyond his previously disclosed put options in the third quarter of 2025, which represented exposure to approximately 5 million shares valued at nearly $912 million.
Tech shares, including Palantir and Nvidia, declined sharply in November 2025, contributing to a wider tech sector slump and bubble concerns that despite dissipating negative sentiment still carried into 2026.
Market participants are looking toward Nvidia’s upcoming earnings announcement as a potential catalyst for sentiment recovery, although recent performance by major tech firms last week has shown that strong results do not always translate to stock price gains, especially amid elevated capital expenditure.
Details of Burry’s positions as of the fourth quarter of 2025 are expected to be disclosed when filings are published by February 14, 2026.
