Why Is Palantir Technologies Stock Crashing This Week?
Shares of Palantir (NASDAQ: PLTR) are falling this week, down 15.1% as of 11:44 a.m ET on Friday. The move comes as the S 500 (SNPINDEX: ^GSPC) and the Nasdaq-100 lost 2.8% and 4.6%, respectively.
The artificial intelligence (AI) powerhouse released another earnings beat on Monday, but the numbers still failed to impress investors, given its extreme valuation. On the same day, a regulatory filing revealed that Michael Burry, head of Scion Asset Management, has taken a significant position, betting Palantir stock will decline.
Michael Burry, the contrarian hedge fund manager made famous by the 2015 film The Big Short, revealed in a regulatory filing that his fund purchased 50,000 put contracts on Palantir stock -- options that pay out when a stock declines in value.
Source Fool.com
