Palantir Short Sellers Lose $3 Billion After 30% Earnings Rally

Palantir Technologies stock jumped 30% on Tuesday. The surge wiped out $3 billion in short sellers' paper profits for 2026.

The rally marked Palantir's best single-day performance in two years, S3 Partners LLC said. Short sellers had built a $2.7 billion paper gain before Monday's earnings news reversed course.

Earnings Beat Catches Bears Off Guard

The reversal followed Monday's raised full-year forecast, which beat Wall Street's revenue and income estimates. Short sellers, who had profited from Palantir's sluggish run, watched those gains disappear in a single session.

Meanwhile, investor Michael Burry disclosed a bearish position against Palantir in November. His short bet helped trigger the stock's earlier slide. He later said in a June newsletter that he had covered half of that position.

Palantir still trades down 10% for 2026, on pace for its worst year since 2022. The stock's earlier slide followed months of contract concerns surrounding its government business.

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