Trump Says Palantir Has "Great Warfighting Capabilities," but Michael Burry Thinks It's Overvalued by More Than Half in 2026

By Keith Noonan – Apr 13, 2026 at 3:15PM ESTKey PointsPresident Trump weighed in with a positive take on Palantir's defense technologies last week. Michael Burry recently said he holds put options targeting big valuation declines for Palantir. Palantir has strong AI software offerings, but the company's valuation profile comes with big risk.

President Donald Trump published a post to Truth Social last Friday, stating that Palantir (PLTR +3.40%) is a company that delivers "great warfighting capabilities." The comments came on the heels of a big sell-off for the stock following some recent comments from "Big Short" investor Michael Burry. Burry has taken a highly visible bearish stance on Palantir stock and has been making headlines this month with statements painting a challenging picture for the artificial intelligence (AI) software leader. In particular, the famous investor thinks that AI rival Anthropic is "eating Palantir's lunch." Image source: Getty Images. Burry is very bearish on Palantir Last week, Burry confirmed that continues to hold bets against Palantir stock. Specifically, he said that he owns put options expiring Dec. 19 at a $100 price point. He also said that he owns $150 strike-price puts expiring June 17, 2027. The price target for the December 2026 puts implies downside of 24%. Meanwhile, his June 2027 strike-price put target implies downside of 62%. In his comment detailing the positions, Burry said "I am not selling these today." While the statement potentially leaves the door open for Burry to sell out of his put options before expiration, his strong bearish stance has attracted a lot of attention. Big sell-offs for Palantir stock may have been a driving factor in President Trump deciding to weigh in with positive commentary on the company last week. Palantir is leading provider of AI software and analytics services for the U.S. military, and the company has made services for the defense industry a key part of its long-term growth strategy. ExpandNASDAQ: PLTRPalantir TechnologiesToday's Change(3.40%) $4.35Current Price$132.41Key Data PointsMarket Cap$306BDay's Range$129.15 - $134.4252wk Range$89.31 - $207.52Volume2.1MAvg Vol51MGross Margin82.37% Palantir's valuation sets up high-risk, high-reward play Palantir stock is seeing positive momentum in Monday's trading. The company's share price had risen 3% in the daily session as of 3:15 p.m. ET. On the other hand, the stock is still down 26% across 2026's trading and 36% from its lifetime high. Even with some substantial valuation pullbacks, Palantir has one of the most growth-dependent valuation profiles of any major tech stock on the market. The company is currently valued at roughly 100 times this year's expected non-GAAP (adjusted) earnings and 43.5 times expected sales. While Palantir currently commands a leading position in the AI software space, the company's highly growth-dependent valuation means that the stock remains a speculative play despite trading down big from its lifetime high. It's likely that the company will continue to win major contracts with U.S. defense agencies and other government organizations, but there's a risk that the business's growth among public sector and private sector customers will fall short of expectations. Along those lines, there's a risk that political shifts in the U.S. could result in a softer demand outlook. Based on the company's core service offerings and stellar sales and earnings growth, Palantir appears to be a very strong company. On the other hand, the stock's valuation profile means that the big upside potential associated with shares also comes with significant downside risk.Read NextApr 13, 2026 •By David Jagielski, CPAPalantir's Growth Has Been Impressive, Its Rule of 40 Score Is Incredible, but This Number Is Just Downright PitifulApr 13, 2026 •By Rick Munarriz2 Monster Stocks to Double Up On Right Now Before They ReboundApr 12, 2026 •By Parkev Tatevosian, CFAMore Unfortunate News for Palantir Stock InvestorsApr 12, 2026 •By Geoffrey SeilerBull vs. Bear: Is Palantir a Buy or Sell?Apr 12, 2026 •By Will EbiefungIs Palantir a Millionaire-Maker Stock?Apr 11, 2026 •By Micah ZimmermanI've Changed My Mind on Palantir Stock.

The Great Repricing Makes It a Buy.About the AuthorKeith Noonan is a contributing writer at The Motley Fool covering technology, consumer goods, and other sectors. He holds a bachelor’s degree in English from Boston College.TMFNoonsStocks MentionedPalantir TechnologiesNASDAQ: PLTR$132.41(+3.40%)+$4.35*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.