A high-profile market clash is emerging in the AI trade, as “Big Short” duo Michael Burry and Steve Eisman take opposing stances on Palantir (PLTR).
Last week, reports surfaced that contrarian investor Michael Burry placed $912.1 million in put options on PLTR in Q3 of 2025, suggesting he expected the stock to collapse.
But fellow “Big Short” investor Steve Eisman thinks that Burry’s move to short a fundamentally strong company would lead to a disastrous outcome. In a new episode of The Real Steve Eisman Playbook podcast, he says betting against strength in a bull cycle can lead to a painful lesson.
“First of all, I have no position in Palantir, but of course, I really wish I had bought it ages ago. Yes, the valuation is incredible, but the company has an incredible story, and it is executing…
So the short thesis, in my view, is purely a valuation one. And I have found over the years that shorting the stock purely on valuation is usually a recipe for disaster unless you catch a correction just right, which is incredibly difficult. In a bull market, shorting great stories because of high valuations is something I just don’t do.
I’ve learned that hard lesson too many times to try doing it again.”
Burry’s massive bearish bet on PLTR also drew the attention of Palantir CEO Alex Karp, who accused the “Big Short” of manipulating the market and inciting panic in order to get out of a much larger position.
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