Michael Burry Comes for Palantir Again — This Time it's the Balance Sheet
Key takeaways
- Burry’s latest critique centers on Palantir’s balance sheet, warning that rapid AR growth and a high DSO may mask weak revenue quality.
- AR grew faster than revenue in 9 of the last 12 quarters
- DSO increased from 35 days (2020) to 66 days (2025)
- Customer A’s AR share: <10% pre‑IPO, 26% (2024), 25% (2025)
What happened
Michael Burry has reiterated a short position on Palantir Technologies (PLTR), focusing on accounting concerns rather than earnings or valuation. He highlighted that accounts receivable have grown faster than revenue in nine of the last 12 quarters, citing potential channel stuffing, aggressive revenue recognition, or extended payment terms. Burry singled out a large government client whose share of AR rose from under 10% pre‑IPO to 26% in 2024 and 25% in the most recent 10‑K, while…
Why it matters
The argument suggests Palantir’s balance sheet may be overstating its financial health, implying that revenue growth could be inflated by accounting tricks. If AR is growing faster than revenue, it raises questions about collectability and the sustainability of cash flow. A higher DSO and a large concentration of AR…
Short-term and longer-term
Short-term. Short‑term traders should watch PLTR’s price reaction to Burry’s post, especially around key support levels near $170.
Longer-term. Longer‑term investors should reassess Palantir’s revenue quality and cash‑flow sustainability.