CNBC reported on November 28 that Palantir shares fell 16 percent in November, marking their worst monthly performance in two years. Concerns over high AI stock valuations drove investors to sell, and unease grew as Michael Burry, known for The Big Short, expanded short positions.
Palantir drew market attention after announcing a 2 billion dollar share buyback plan in its third-quarter earnings. But RBC Capital Markets warned that Palantir’s growth relies too heavily on certain customers, and Deutsche Bank also pointed to valuation risks, CNBC reported.
The stock fell 10 percent on November 10 following the earnings release.
Palantir CEO Alex Karp told CNBC that claims of an AI and semiconductor bubble are absurd and criticised Michael Burry as a market manipulator. But AI-related shares stayed weak throughout November. Nvidia fell 12 percent, Microsoft and Amazon each dropped 5 percent, while Apple and Alphabet posted small gains.
Chikyuu Hwang
delight@d-today.co.kr