Michael Burry says Anthropic is 'Eating Palantir's Lunch', is Palantir Still a buy?

Firstly, he pointed to some recent numbers & data from the March AI Index that Ramp put out - and what it shows is that nearly 25% of Ramp's business customer base is now using Anthropic and paying for it - a 600% increase from just a year ago. In that same report, 73% of all new spending on enterprise AI is going straight to Anthropic. On top of that, he noted the wild contrast between Anthropic's revenue growth - which has gone from $9bn to $30bn in the space of just a few months. The fact that Palantir took 20 long years to get to just $5bn in revenue.

In addition, his structural argument is perhaps even more telling: Palantir makes a lot of its money through its Forward Deployed Engineers who are embedded with client operations - in Palantir's own words "professional services" in their 10-K filing report. But Anthropic's API on the other hand can deploy AI straight into existing enterprise workflows without needing to send out a whole team of engineers to do it. 

Then to top it all off - just a day before this whole thing blew up - Anthropic launched Claude Managed Agents, which lets enterprises build their own AI agents from as little as $0.08 per hour and get them deployed in the space of days - right into the same buyer market that Palantir's AIP platform is trying to corner.

This isn't the only thing that's causing confusion, though: Burry has put his hands on 5 million put options on PLTR shares which expire in 2027 - and that's a pretty big conflict of interest, especially as this story broke.

Burry's short-game has a glaring weakness. He's got Palantir's government business all wrong. Its dealings with the government aren't as shaky as he makes out. Palantir got something important with the Pentagon putting the Maven Smart System on the list of Programs of Record, back on March 9th 2026. That means the government will have to keep throwing good money at it, year in year out. 

Meanwhile Anthropic will be stuck out in the cold thanks to Trump's earlier ban on them - it was over a row over safety 'guardrails' in fact. And in the tricky, super-classified world of AI & national security, Palantir's got a safety net that API providers just can't touch.

Palantir did amazingly in Q4 2025: $1.4 billion in revenue, a 70% increase on the same time the year before - with $507 million of that coming from the US alone, and that was a 137% jump in revenue.

Source: palantir.com

Then there's the 2026 forecast that came out all guns blazing with $7.2 billion. They're swimming in cash with $7.2 billion to their name and not a single penny of debt on the books. Analysts are saying you can expect to see palantir trending at $202.50. That means there's a whopping 55% upside waiting to be tapped from where the share price is currently.

The problem is the valuation - Palantir's trading at a jaw-dropping 142 times its forward earnings. That puts it third on the list for the whole of the S&P 500, and it's clear that the downward pressure on the share price has more to do with worries about the competition, rather than any actual lack of fundamentals at palantir

Palantir (PLTR) Price Chart - Source: Tradingview

Palantir (PLTR) is trading strongly bearish after the rejection from the $150-$156 supply zone which really took off with a vengeance, sending the price plummeting down to the $130 mark and now putting it right on the doorstep of a critical demand cluster.

On the 4 hourly chart, the triple bottom pattern is around the $126-$121 zone, and this zone has historically proven to be a strong base. After such a high-impact selloff, price is currently being tested out in that area and that's got the potential to sweep out some of the sellers who are still holding on tight and potentially lead to some stabilization.

To get some bullish confirmation going, PLTR needs to reclaim and get back above $135, which is the spot where the previous support turned into resistance. If it can manage that then it would validate the triple bottom and open up the path to $141 and $149.

But if $121 can't hold then everything changes and we're looking at deeper downside towards $117.

Palantir (PLTR) Price Outlook: The short-term is likely to be a bit of a consolidation play within the $121-$135 range, followed by a potential bullish reversal if the buyers can start to get accumulation going.

Why did Palantir stock drop on Michael Burry's post? 

Burry has been pointing out that the data from Ramp is pretty clear - Anthropic is really taking off, grabbing 73% of new enterprise AI - that's basically the whole ball game. With Palantir trading at 142 times earnings, any credible threat to its dominance is going to have some serious impact on the stock price. In other words, the market has got super high expectations so it's going to be pretty brutal about perfection.

Does Anthropic's growth actually threaten Palantir?

Well, yes it does, especially when it comes to mid-sized companies that want to just plug in some off-the-shelf AI rather than hire a bunch of engineers. But when it comes to govt and classified work, Palantir is still good to go. For instance, Anthropic is actually banned from working with the Feds after a safety dispute, meanwhile Palantir just scored a big contract with the Pentagon.

Is PLTR a buy at $130?

On the surface at least, Palantir's numbers look great - $7.2 billion in 2026 revenue, a massive cash balance, 70% revenue growth last quarter, everything is ticking along nicely. But the problem is, the reason investors are willing to pay so much for Palantir is because everyone thought it was a dominant player - but that's not looking so clear cut now that Anthropic is on the scene. Whether $130 ends up being a floor for the stock will come down to whether people hold onto it at around $125 and whether the numbers coming out reflect that the business is still growing nicely.