Dan Ives Says Michael Burry Is 'Dead Wrong' on Palantir After Blockbuster Earnings

Wedbush analyst Dan Ives strongly defended Palantir (PLTR) against Michael Burry's bearish bet, likening its growth trajectory to early Salesforce and AWS and positioning it as a cornerstone of the AI software landscape. Ives highlighted Palantir's recent strong quarter, driven by soaring U.S. commercial demand, which he expects to surpass the company's current scale within three years. Despite a recent stock decline, shares remain up over 150% year-to-date, with Ives dismissing dot-com bubble comparisons and urging investors to focus on Palantir's growing free cash flow and long-term fundamentals.

Analysis

Wedbush analyst Dan Ives has issued a strong defense of Palantir (PLTR), countering Michael Burry's bearish stance by likening its growth trajectory to early Salesforce, Amazon Web Services, and Microsoft. Ives positions Palantir as a cornerstone of the AI software landscape, citing what he described as one of its strongest quarters ever. This performance was driven by soaring demand in its U.S. commercial business, which he projects will surpass the company's current scale within three years.

Despite this highly bullish commentary and strong underlying business performance, Palantir's stock experienced a significant short-term decline, sliding nearly 8% on Tuesday to $190.74 and an additional 3% after hours. Ives dismissed concerns about a potential AI bubble, urging investors to focus on Palantir's growing free cash flow and robust long-term fundamentals. This suggests a divergence between immediate market sentiment and the analyst's long-term conviction.

The recent decline occurs within a broader context where PLTR shares have still appreciated over 150% in 2025, indicating a strong long-term uptrend despite this short-term volatility. Ives explicitly cautioned against focusing solely on one-year valuations, reinforcing a long-term investment perspective based on the company's strategic position in AI. The analyst's strong positive sentiment (0.8) and bullish tone underscore confidence in Palantir's foundational role and future growth.

Key Decisions for Investors

• Investors should closely monitor Palantir's U.S. commercial growth trajectory and free cash flow generation for validation of the long-term bullish thesis, despite recent short-term stock volatility.
• It may be prudent to assess current valuations against the company's strategic positioning in the AI landscape and long-term fundamentals, rather than focusing solely on short-term price movements.
• Acknowledge the contrasting views from prominent investors like Michael Burry regarding potential AI bubble dynamics, integrating a balanced risk assessment into investment decisions.