Famed short-seller Michael Burry says Palantir (PLTR) may be on the brink of a long-term decline as Anthropic begins to dominate the enterprise segment.
In a new post on X, Burry compares the growth trajectory of Anthropic and Palantir, noting that the Claude creator is now generating $30 billion in annual recurring revenue (ARR) from $0 in 2023.
The “Big Short” investor says Anthropic is gaining the upper hand in enterprise, while Palantir settles for low-margin defense and government contracts.
“Anthropic is eating PLTR Palantir’s lunch. That massive boost from $9 billion to $30 billion ARR at Anthropic is because Anthropic offers the easier, cheaper, intuitive solution for businesses. PLTR can have government, which is low margin and small. Anthropic went from $9 billion to $30 billion in months. It took PLTR 20 years to get to $5 billion. Anthropic is taking 73% of all new enterprise spending per Ramp.
Anthropic is very well run and knows what it is doing.”
Burry also says he’s seen a similar rivalry play out before in the early 2000s, when Google was the upstart positioning itself to disrupt the once-dominant search engine Yahoo.
“Few remember when Google stepped out from under Yahoo.”
In the late 1990s, Yahoo became the default homepage of the internet, offering news, mail and navigation. The firm had the chance to buy Google for $1 million in 1998 but rejected the offer. It had a similar opportunity in 2002 to buy Google for $5 billion, but no deal was made.
At its peak, Yahoo was valued at $125 billion, but Google eventually ate its lunch and became the search and advertising giant. Yahoo began a slow, long-term decline before being sold to Verizon in 2017 for $4.5 billion.
Burry appears to be saying that Palantir will follow the same route.
In February, Burry predicted that PLTR would plummet to about $50. And in Q4 of last year, he placed a $912 million bearish bet on PLTR, believing that it should be valued at $30 or less.
As of Wednesday’s close, PLTR is trading at $140.
Photo by Salvador Rios on Unsplash
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