Palantir Has Worst Meltdown Month in Two Years, Karp Continues to Wield His Sword…

Just remember: everything the golden calf touches becomes cursed…. 

It’s been one of those months where you can practically hear Dr. Burry sharpening a pencil on his new Substack letter. Palantir walked into November feeling pretty good about itself… another $1B revenue quarter, numbers clean enough for Karp to do his mad scientist grift… and then the entire AI trade shat the bed.

(Source: Giphy) 

And naturally, Palantir was the one that face-planted the hardest. Down 16% for the month. Worst stretch since 2023. One earnings beat, two CNBC appearances, and still no survivors. AI stocks as a whole got smoked, but PLTR took the brunt of it like it was trying to prove something to somebody. Of course, the analyst commentary didn’t help. Jefferies basically wrote off Karp & Co. while RBC pointed out that Palantir’s growth story is now “concentrated”. Translation: The government is still the only one writing checks big enough to matter. Even Deutsche Bank went with the classic: “valuation is difficult to wrap our heads around”. 

(Source: CNBC) 

Meanwhile Burry showed up and threw himself on top of the fire. Not content with shorting Nvidia, he added Palantir as well, then claimed hyperscalers are juicing earnings like prime Barry Bonds. Which set up the inevitable. Karp logging onto CNBC ready to choose violence: “The idea that chips and ontology is what you want to short is batsh*t crazy.”

With that said, it wasn’t all doom and gloom. Palantir did land wins this month with a new PwC contract, an FTAI deal, and a handful of nice logos, none of which mattered because the only thing anyone cared about was valuation. But across the rest of the board though? Blood. Nvidia down 12%. Microsoft and Amazon off ~5%. Random quantum stocks evaporated. Apple and Google were the only ones who didn’t get carpet-bombed. It was the kind of month where everyone remembered valuations exist, and the entire sector reacted like they'd been caught with their d*ck in their hands. 

(Source: Giphy) 

Looking ahead to December, Karp is, of course, gonna Karp. He’s telling shareholders his company is delivering venture-style returns to “everyday investors,” which is technically true if “everyday” includes people comfortable holding a stock trading at a triple-digit forward multiple. He also told investors to turn on their TVs and enjoy watching the doubters cry. Savage. And yet, the reality is as simple as it gets.  November was the first time in a while that the market collectively looked at PLTR and said, “Okay, show us something new.” Being the AI-industrial complex darling only works when multiples keep expanding. When they contract, valuation math turns into a horror film. To be clear, Palantir didn't do anything wrong this month. The sector just stopped pretending gravity was optional.

Meaning now, it’s a waiting game. Either the stock grows into the multiple, or the multiple keeps wobbling until someone blinks. Karp will keep swinging the sword. Burry will keep writing diss tracks on Substack, and analysts will keep repeating “233x” like they’re trying to summon something. As for retail, we’re stuck in the middle as always. So place your bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News holds positions in Microsoft and Amazon as mentioned in the article.