The World's Most Famous Bear is Calling for Another Selloff
The world's most famous bear is calling for another selloff
$Palantir Technologies Inc.(PLTR)$ is down nearly 40% from ATHs and Michael Burry still hasn't fully closed his short position, but the stock hasn't made a new low in 8 months
After an almost 50% pullback from ATHs at 208 to 106,
$Palantir Technologies Inc.(PLTR)$ is right back near its key 140 level after defending the buy zone at 117. If
$Palantir Technologies Inc.(PLTR)$ manages to break past 140, it can retest 166 and 200 after that, which means Burry will get squeezed out on the way up. If upcoming earnings go poorly, Burry gets paid if
$Palantir Technologies Inc.(PLTR)$ dumps past 100, which will trigger another huge round of selling towards his next strike at $50
Key Catalysts 🔑
Q2 earnings, August 3: Citi's Radke raised estimates and set $200. CEO Alex Karp has beaten and raised every quarter this cycle. The bar is high but so is the track record
AIP enterprise adoption: Revenue growth is running 67.7% YoY with adjusted operating margin near 51%. Commercial AIP deals are still early innings relative to the government book
Burry short as sentiment fuel: His puts are struck at $100 and $50. Every rally that holds above his strikes forces more of the short to prove itself wrong, which is fuel on the way up
If earnings gap $Palantir Technologies Inc.(PLTR)$ towards 166 and buyers break through, Burry's shorts help fuel the next leg towards 200. Lose the 117 buy zone and
$Palantir Technologies Inc.(PLTR)$ rolls back toward the $107 low, which is the line in the sand for the whole "holding up well" thesis
Trade Ideas 🚀
$Palantir Technologies Inc.(PLTR)$ above 140
Day Trade: 8/7 145C
Swing Trade: 9/13 150C
The stock is almost down 40% from the highs and the most famous short-seller in the world is leaning on it, and
$Palantir Technologies Inc.(PLTR)$ still won't break. Does Burry know something we don't or is he due to get burned?
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