Palantir’s stock has dropped a third from its peak. Michael Burry has a new line of attack.

MarketWatch

by Steve Goldstein

February 19, 2026

AI-Generated Deep Dive Summary

Palantir Technologies' stock has dropped nearly 33% from its peak, sparking fresh scrutiny from Michael Burry, the renowned former hedge-fund manager featured in *The Big Short*. Known for his prescient bets against the housing market during the subprime-mortgage crisis, Burry has now turned his attention to Palantir's financials. By analyzing the company’s 10-K filing, he highlighted that accounts receivable have grown faster than revenue over nine of the past twelve quarters. This discrepancy raises concerns about Palantir’s ability to collect payments from clients in a timely manner, potentially signaling issues with cash flow or client satisfaction. Burry’s critique comes as Palantir faces broader challenges. The company, a leader in AI-driven data analytics, has seen its stock tumble despite strong revenue growth. However, Burry argues that the increasing gap between accounts receivable and revenue over nearly three years suggests underlying problems. He points to specific quarters where this trend has accelerated, including the most recent one ending September 2025, when Palantir reported a significant jump in receivables compared to prior periods. For investors, Burry’s analysis adds another layer of complexity to evaluating Palantir’s health. While the company continues to expand its customer base and deliver revenue growth, questions about the sustainability of its business model persist. This critique aligns with broader market skepticism surrounding high-growth tech stocks, which have faced increased scrutiny in recent months due to concerns over valuation and long-term viability. Palantir has yet to directly respond to Burry’s comments, but the timing of his analysis coincides with a period of heightened investor sensitivity to financial metrics. As the company prepares for its next earnings report, all eyes will be on whether it can address these receivable concerns while maintaining its momentum in the AI and data analytics space. For readers interested in finance, Burry’s critique offers valuable insight into how even high-flying tech companies with strong growth trajectories can face critical challenges. His analysis underscores the importance of closely examining financial metrics beyond surface-level performance indicators. This story matters because it highlights the risks inherent in high-growth markets and serves as a reminder that even successful companies are not immune to scrutiny, especially when it comes from

Verticals

financemarkets

Originally published on MarketWatch on 2/19/2026