ARK Invest 'Dumps' Palantir After Blockbuster Earnings...Michael Burry "Should Have Shorted"

▲ Palantir (PLTR), US Stock Market/AI Generated Image

Palantir Technologies (PLTR) surged 29% thanks to blockbuster artificial intelligence (AI) earnings. Investor Michael Burry expressed regret for not shorting the stock to the tune of $1 trillion. ARK Invest, led by Cathie Wood, sold $6.38 million worth of shares.

According to Stocktwits on August 5 (local time), Palantir's stock price closed at $162.66 on the 4th, up 29%. This marked the largest increase in the past six months, and the closing price also reached its highest level in over six months.

Palantir's Q2 revenue increased by 93% year-over-year to $1.94 billion, exceeding market expectations of $1.81 billion. Adjusted earnings per share (EPS) were $0.41, surpassing the estimated $0.35. US commercial sector revenue surged by 149%, and government sector revenue by 90%. There were 220 contracts worth over $1 million, 73 of which exceeded $10 million.

Palantir raised its 2026 revenue guidance to $8.15 billion-$8.16 billion, exceeding both its previous high-end guidance of $7.66 billion and market expectations of $7.72 billion. Ryan Taylor, Palantir's Chief Revenue Officer, stated, "Our Q2 results are unprecedented but not surprising at all," adding, "All metrics hit all-time highs."

Despite the stock's surge, Burry did not back down from his short position. He said, "Of course, I wish I had shorted Palantir to the tune of $1 trillion." Burry stated that he maintains short positions in SOXX, Micron (MU), Nvidia (NVDA), Caterpillar (CAT), Palantir, Tesla (TSLA), and Applied Materials (AMAT). Previously, in November 2025, he disclosed Palantir put options worth $912 million in notional value, covering approximately 5 million shares.

On the same day, ARK Invest sold 31,469 shares from the ARK Innovation ETF and 7,764 shares from the ARK Fintech Innovation ETF. The total volume sold was 39,233 shares, valued at $6.38 million based on the closing price. Morningstar, while commending Palantir's growth and profitability, warned that "there is little room for error." It maintained its fair value at $153.

[Article Summary]

-Palantir's stock surged 29% driven by strong Q2 earnings and an upward revision of its annual outlook.

-Michael Burry expressed regret for not shorting $1 trillion worth, maintaining his bearish outlook.

-Cathie Wood's ARK Invest sold $6.38 million worth of Palantir shares on the day of the stock's surge.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*