Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTOpeyemi BabalolaFri, September 4, 2026 at 8:33 PM GMT+2 5 min readMichael Burry built his reputation by being early and right about a bubble nobody else could see.On Wednesday he turned that instinct on Palantir Technologies (PLTR), calling the company an AI consultant riding a wave of corporate FOMO and warning its market value could eventually fall below $100 billion.By the time his post went up, Palantir had already banked a new Army contract two days earlier, and within hours PwC piled on with an expanded alliance of its own.That timing is the story. Bear cases usually land in a vacuum, giving the market time to sit with the discomfort. This one landed in the middle of two corporate wins, and the stock barely flinched.Burry's bear case rests on the balance sheetBurry's argument, laid out in a Seeking Alpha writeup of his post, is not really about growth. It is about what kind of company Palantir actually is.He compared Palantir's deferred revenue ratio, about 32%, to Accenture's roughly 31% and to subscription software firms like Salesforce and ServiceNow, which run between 80% and 207%.Related: Jim Cramer explains Palantir, Salesforce reboundThe implication is that Palantir bills and books revenue more like a consulting shop than a software platform, which matters because consultants trade at far lower multiples than SaaS companies do.He also flagged accounts receivable climbing to $1.49 billion as of June 30 from $1.04 billion at the end of 2025, with one customer responsible for 27% of that balance despite no single customer accounting for more than 10% of revenue.Rising receivables tied to a concentrated customer can signal that a company is booking revenue faster than it is actually collecting cash.A few additional details rounded out the critique:Palantir reported about $1.6 billion in pretax GAAP income in 2025 but paid no federal cash taxes, a gap Burry linked to stock-compensation deductions that pushed federal net operating loss carryforwards up to $9 billion.The company canceled a $1 billion buyback authorization after repurchasing only about $75 million of stock in 2025.CEO Alex Karp's personally owned aircraft cost the company $17.2 million in 2025, more than double the $7.7 million spent a year earlier.Palantir shares rose nearly 7% after a PwC alliance and Army contract offset Michael Burry's renewed $100 billion valuation warning.JHVEPhoto / Getty ImagesPwC just expanded its Palantir allianceHours after Burry's post, PwC announced it was deepening its alliance with Palantir to build what the firms called the industry's first AI-native deals platform, running on Palantir's Foundry and AIP software, according to a press release from PwC.The platform targets mergers, acquisitions and divestitures, and the firms say it is designed to help clients execute deals up to 50% faster while cutting one-time transaction costs by as much as 45%.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info