Palantir Slides on AI Valuation Concerns, Burry Put Options

Palantir Technologies Inc. shares dropped almost 8% on Tuesday, tumbling on concerns about the company’s lofty valuation and the sustainability of the AI rally, even after it topped analyst estimates for third-quarter sales and raised its annual revenue outlook.

Adding to Wall Street’s anxiety, hedge fund manager Michael Burry disclosed bearish wagers on Palantir and artificial intelligence chip leader Nvidia Corp. Burry’s Scion Asset Management bought Palantir put options, which increase in value as shares decline, according to the latest 13F regulatory filing.