Palantir’s stock dropped 7% as Wall Street analysts worried about its high valuation and Michael Burry disclosed a short position. CEO Alex Karp criticized short sellers, calling it “market manipulation.” Despite beating revenue and raising guidance, the stock fell. Concerns about an artificial intelligence bubble persist, with analysts questioning Palantir’s high valuation. The company’s current forward P/E ratio is 254, much higher than Nvidia’s 35. Analysts see better risk-reward in other AI software companies like Microsoft and Snowflake. Despite strong performance, concerns about valuation persist.

Read more at CNBC: Palantir drops on valuation concerns as Karp rips short-sellers