Investment expert with a sharp warning: "The stock will be worth less than a dollar"

Investment expert Michael Burry, who made his name betting against the US mortgage market in 2008, is back to sharply attacking the software and AI giant Palantir (ticker: PLTR).

In a special report published on Cassandra Unchained, Burry revealed that he purchased out-of-the-money put options expiring in March 2027 with strike prices around 100 dollars.

Burry explained that the decline in implied volatility in the market pushed option prices to a low, which allowed him to renew his bearish position at a convenient time.

The forecast provided by Burry is particularly extreme:

"The long-term intrinsic value of Palantir stock is less than one dollar."

According to his assessment, the company is currently trading at an inflated valuation of almost 69 times sales. Alongside the high multiple, Burry points to troubling accounting data, including the issuance of 31.3 million shares to employees worth about 5 billion dollars in the last year — an amount six times higher than its declared expenses for stock-based compensation.

Burry defined this discrepancy as "the widest accounting gap among 66 companies I recently examined," and added that non-cancellable purchase obligations for infrastructure, which do not appear on the balance sheet, have more than tripled this year.

This aggressive move comes at a particularly tense time for market bears. Palantir stock jumped by almost 40% last week following strong financial reports, accelerated revenue growth in the US, improvement in profit margins, and an increase in the annual forecast, which put short-sellers under heavy pressure.

Furthermore, Burry's track record raises questions regarding the stability of his forecasts. Investors recall that in January 2023, Burry published a particularly brief warning on his Twitter account, posting a tweet with only one word: "Sell".

Since that dramatic warning, the S&P 500 index has jumped by about 90%, leaving him with a resounding error. Now it remains to be seen if the dark prophecy about Palantir will come true, or if it is another miss by the famous investor.