Ray

Hedge Fund manager , James Cordier , apologizes to 290 clients after losing $150 million of their money while trading Naked Call Options on Gas futures

I agree there. Burry sounds like a grumpy old man who doesn’t understand AI or Palantir’s business model. Palantir can absolutely be a tactical short in the medium term (which I agree as well), as stocks go through distribution cycles such as one $PLTR is undergoing right now. That’s just price action doing its thing. But his rationale and reasoning screams “I don’t get AI or what Palantir does”. His thesis to me is simple. It’s a pure valuation and macro mean-reversion call (I’m with him on that too) and that’s about it cause everything else he says to justify this sounds childish. Two things can be true simultaneously.

$PLTR Had a few days to read through everything Burry has put out on Palantir. First, I agree with everything Arny laid out below and it is a must-read around the worst takes of his 10,000 word article. I'd like to add the following thoughts: 1. This feels like a complete and utter grift. Why? There is a paywall attached to the article and he knows Palantir is a hot topic so he can sell more subscriptions if he were to go after the company. Everything around this just seems like someone who is going after clicks and trying to find his next big thing to be upset about (so many people missed the Palantir story or generally hate the company) so he knows he has an audience that would be willing to click and pay for this. 2. The entire premise of these 10,000 words is quite frankly rooted in nonsense. Anyone can complain about the valuation for a company. Palantir has always been expensive (there are many reasons to explain why) and arguing about the stock is fine. The problem with the article is Burry tries to argue the company itself, it's technology, and it's results are all fake. To be honest, this is a bit laughable. For those that have actually studied the company in depth over the past few years, there are many layers to understanding why Palantir is mission critical in every layer of the US govt, why their software is part of every important geopolitical event, why they are able to compound revenues at 70% as the only really SaaS company showing the benefits from AI, why Maven is becoming the backbone of the Department of War...I can go on and on but to dismiss all of these quantitative and qualitative results as "its a consulting company with a fancy backend" is LAUGHABLE and using arguments from years ago that are simply not relevant today. 3. I don't think Burry is actually looking into how AI becomes valuable in the enterprise. His entire premise for Palantir not being an AI company is that they haven't developed an LLM...newsflash: that's the point. Karp has been clear from the beginning that LLMs would become a commodity and being able to orchestrate the LLMs within the enterprise was going to be where all the value came from. The ENTIRE reason AIP was successful was because it took 20 years to build the foundations to actually implement LLMs and once the LLM revolution began, Palantir was ready to help companies harness the power of those models. This was the worst part of the report to me, it's almost as if he did ZERO research into what the company actually does...which if you are going to write a 10,000 word article...it would probably make sense to do research and understand the usecases of the product. If you were trying to sell subscriptions, the goal would be to simplify the entire business to a talking point so that headlines would catch fire and you could get more people to pay for the subscription. 4. The majority of the report seemed to be focused on the past with Palantir's DPO. The business is not the same business as it is today. Every company evolves and goes through hard times but the ones that actually survive are the ones that create value, show real growth, are able to sustain it, innovate, and do it in a way that actually brings global brand awareness at scale. Palantir has done that and they have done it with less than 4000 people working at the company which just goes to show how incredible the culture is for them to put up those results. Complaining about financials from years ago is irrelevant when we look at the financials today, which those financials have been given a premium, and how investors continue to believe in the growth of the business now as one of the most important companies on the planet. Finally, the largest issue I have with this is when you look to what Burry is actually bullish on this year...which is...Gamestop. Please think of this carefully...one of the most important software companies on the planet with 50% margins and 70% growth is a scam, fake, not real AI, unsophisticated technology...but a company that sells videogames and buys bitcoin with the money they dilute shareholders with is what Burry thinks real value lies? Again, you could be bullish on GME, I quite frankly don't care, but the problem is the disparity between a videogame company and the software that is on the frontlines of every single major important geopolitical event is too large to take any of this seriously. I mean, it genuinely feels like a full grift to tell your followers to "go meme it up" when writing about GME but then at the same time try to advertise that Palantir is fake. It makes no sense. It is all rooted in personal self interest to promote the stock he is long and play down the stock he is short when any rational person would look at the 7B of revenue Palantir is going to do in 2026 (sticky revenue that compounds at amazing margins in mission critical situations) and then compare that to Burry's horrific analysis of the company. This is embarrassing in my opinion and showcasing an unbelievably disgusting form of grifting from someone who has too much influence to do so, but I guess this is the route he has chosen to go on.

Trading this market feels like...

BREAKING: SpaceX wants to turn Space into the World’s Biggest AI Data Center. • SpaceX is seeking approval to launch and operate up to one million satellites designed to function as orbital data centers. • These satellites would provide massive computing power to support advanced artificial intelligence and data processing. • The system would rely on near constant solar energy in space, reducing operating costs and environmental impact compared to Earth based data centers. • Satellites would operate between 500 km and 2,000 km in altitude, across multiple orbital shells, to handle global demand. • High speed laser links would connect the satellites with each other and with the Starlink network, enabling petabit level data transfer. • Data would ultimately be routed to authorized ground stations around the world. • SpaceX says demand from AI, machine learning, and edge computing is growing faster than terrestrial infrastructure can handle. The company frames this as a major step toward a future where humanity becomes a multi planetary civilization powered by space based infrastructure.