Ross Gerber is warning investors not to bet against Palantir Technologies Inc. (NASDAQ:PLTR).
In a recent post on X, the Gerber Kawasaki Wealth & Investment Management CEO wrote, “If you learn any lesson today. Don’t bet against crazy people. Shorting/puts Palantir is a bad idea… Burry blah blah blah… $PLTR.”
From Critic To Cautionary Voice
That's a major tonal shift from 2020, when Gerber harshly criticized Palantir. “Just in case you’re looking for the most unethical, un-ESG stock since Facebook,” he wrote at the time. “We have the evil Palantir going public today. Get a slice of the people surveilling you and giving it to the police and government.”
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His recent comments came shortly after a new SEC filing revealed that Michael Burry‘s Scion Asset Management had taken massive short positions in both Palantir and Nvidia Corp. (NASDAQ:NVDA), including nearly $912 million in puts against Palantir.
Palantir CEO Alex Karp didn't hold back either. Speaking to CNBC recently, he called the short position “batsh*t crazy.”
“The two companies he’s shorting are the ones making all the money, which is super weird,” Karp said. “The idea that chips and ontology is what you want to short is bats–t crazy.”
Despite Palantir outperforming Wall Street expectations in Q3 and issuing positive guidance, its stock fell 7% the morning after Karp’s comments. Nvidia shares slipped nearly 2%.
Karp added, “I do think these [short-sellers] behavior is egregious and I’m going to be dancing around when it’s proven wrong.”
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Betting On Crazy People
Gerber elaborated on his thinking during a recent interview with The Information. While discussing Elon Musk‘s newly approved $1 trillion Tesla Inc. (NASDAQ:TSLA) pay package, Gerber explained why he tends to back bold visionaries.
“I typically bet with crazy people like Elon,” he said. “Over the last decade, Elon has helped make me a ton of money.”
Although he doesn't fully buy into Musk's vision, Gerber said he still holds Tesla stock due to the company's uniqueness. “I vote with my dollars. I’ve sold a lot of stock over the last several years… on the other hand, I’ve kept a certain amount because there really isn’t any company like it.”
He echoed a similar sentiment on Palantir. While not offering an endorsement, his post made it clear he sees betting against the company as unwise, especially in light of rising investor interest in AI.
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AI Bubble Or Just Growing Pains?
Burry, famous for calling the 2008 financial crisis, sees things differently. In a recent post on X, he mocked Karp's CNBC interview, writing: “Doesn't surprise me one bit that Alex Karp and his ‘ontology’ @PalantirTech cannot crack a simple 13F.”
He added a jab at Palantir’s data science credibility, saying that a key rule in both philosophy and data science is knowing when you don't have enough information to make a solid conclusion. In simple terms: if you’re missing key facts, don't pretend you know the answer.
Whether Burry's thesis proves right or not, Gerber and Karp are aligned on one point: shorting Palantir might not be the smartest move right now.
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