Palantir Jumps 7.7% as PwC AI Deal Defies Michael Burry’s Short

Palantir Technologies (PLTR) jumped 7.7% to USD 182.53 on September 3, 2026, after announcing an expanded artificial intelligence partnership with PwC US and reporting exceptional Q2 earnings. The rally reversed a 5.8% decline the prior day and directly countered investor Michael Burry’s recent bearish call that Palantir is overvalued and could eventually trade below a USD 100 billion valuation. Revenue grew 93% year-over-year to USD 1.935 billion in Q2, the strongest quarter in company history.

Why Palantir bounced back so hard

Palantir shares recovered sharply after PwC US announced it would deploy Palantir’s AI analytics solutions to transform client operations in mergers and acquisitions and ERP modernization. The deal arrived as software stocks rallied broadly on falling US Treasury yields. Palantir closed the session up 7.7% to 8.01%, nearly erasing the prior day’s 5.8% drop and posting its best single day in a month.

Michael Burry’s short thesis and the market’s response

On September 2, investor Michael Burry published a bearish article titled “Palantir: Eine Bilanzierung” (Palantir: A Reckoning), arguing the company behaves like a consulting business rather than traditional software. Burry, who holds put options and remains short, warned that despite Palantir’s USD 440 billion valuation, the stock could eventually fall below USD 100 billion. He cited rising receivables, low deferred revenue relative to SaaS peers, heavy stock-based compensation, and executive spending as red flags. The market ignored the warning and bought the PwC announcement instead.

Q2 results show exceptional growth and cash generation

Palantir’s second quarter revenue reached USD 1.935 billion, up 93% year-over-year, marking the fastest growth rate since the company went public in 2020. US commercial revenue accelerated 149% year-over-year, while US government revenue grew 90%. The company generated USD 1.22 billion in adjusted free cash flow with a 63% margin, and its Rule of 40 score reached 155%, well above the 40-point benchmark that signals healthy growth and profitability balance.

Meyka data and analyst consensus diverge on valuation

Meyka grades Palantir a B+ with a neutral recommendation, citing a PE ratio of 145.28 and a price-to-sales ratio of 68.24, both elevated. The 12-month forecast stands at USD 206.34, implying 18% upside from current levels. Analyst consensus rates the stock a buy with a median price target near USD 192, suggesting limited downside. However, Burry’s warning highlights valuation risk if growth slows or market sentiment shifts away from AI spending.

Final Thoughts

Palantir’s Q2 beat and PwC deal provided near-term relief, but Burry’s short thesis on overvaluation and consulting-like economics remains a key risk. With Meyka grading PLTR a B+ and analysts targeting USD 192, the stock trades on growth momentum rather than valuation comfort.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.