Palantir CEO Karp twice slams short sellers as stock suffers worst week since April

This week marked a turbulent period for Palantir Technologies, with the company's stock price dropping over 11% despite a strong earnings report that exceeded market expectations. CEO Alex Karp, who co-founded the data analytics firm in 2003, took the opportunity to criticize investors who are betting against the company's success during two interviews on CNBC. Karp's comments followed revelations from prominent investor Michael Burry, known for his role in 'The Big Short,' about his short positions against both Palantir and Nvidia. In a Tuesday interview, Karp accused these short sellers of engaging in 'market manipulation.' He reiterated his stance on Friday, specifically addressing Burry's negative outlook on Palantir's stock. "To exit his position, he had to undermine the entire economy by tarnishing the best financials ever... which are benefiting everyday investors and our efforts on the battlefield," Karp asserted. Despite the recent downturn, Palantir’s stock has seen a remarkable increase of 135% in 2025 alone and has surged 25-fold over the past three years, elevating the company's market capitalization to over $420 billion. While both revenue and profit are soaring, the stock's valuation has escalated even more dramatically, currently trading at approximately 220 times its expected earnings. For comparison, Nvidia and Meta have forward price-to-earnings ratios of about 33 and 22, respectively. Short seller Andrew Left from Citron Research has previously described Palantir as 'detached from fundamentals,' suggesting the stock should be valued at around $40, even though it closed on Friday at $177.93 after a late-day rally. Palantir, which develops analytical software for major corporations and government entities, reported earnings and revenue figures that surpassed analyst forecasts this week, along with a positive outlook that was ahead of Wall Street's predictions. However, the stock dipped about 8% following the report and fell nearly 7% on Thursday. Karp emphasized that the current surge in Palantir’s stock performance isn't limited to Wall Street interests, stating, "We’re delivering venture results for retail investors." Interestingly, while the company has historically faced significant short interest, it has recently seen a decline in such bets, with the short interest ratio dropping from over 9% in September to just over 2% now, marking one of the lowest points since going public in 2020. Karp has consistently challenged skeptics of Palantir, previously suggesting that those unhappy with the stock price should 'exit.' Earlier this year, he remarked, "You don't have to buy our shares. We’re happy... you can be along for the ride or you don’t have to be." The CEO has also faced criticism over Palantir's collaborations with government agencies like the U.S. Immigration and Customs Enforcement (ICE). Karp acknowledged that his outspoken pro-Israel views have led to some departures from the company. Throughout the week, he maintained a combative tone, questioning those who chose not to invest and advising them to 'get some popcorn.' On CNBC, he directed much of his frustration at Burry, stating, "The two companies he’s shorting are the ones making all the money, which is super weird. The idea that chips and ontology is what you want to short is absolutely crazy."