Burry Doubles Down: Palantir Trades Like a Consultant, Not a Software Firm

What happened

Michael Burry, the investor known from "The Big Short," has again argued that Palantir Technologies' financials resemble a consulting firm more than a software company. He bases this on Palantir's own filings, pointing to accounts receivable growing faster than revenue in nine of the last 12 quarters, and compares Palantir's collection patterns to Accenture's rather than Salesforce's.

Why it matters

Burry suggests the company, valued around $420 billion, could eventually be worth less than $100 billion—more than 75% below today's value. He has put options on 5 million Palantir shares, indicating he may profit if the stock falls. If the market agrees with his reclassification of Palantir's business model, shares at about 150 times earnings could drop significantly.

What to watch

The latest data show receivables at $1.49 billion at end of June, up 43% from end of 2025, while revenue grew 38%. One customer, Customer I, owed about $400 million, representing 27% of receivables, despite no customer exceeding 10% of revenue. Palantir's deferred revenue stands at $613 million, about 32% of quarterly revenue, similar to Accenture's ratio.