Palantir Technologies Inc. (PLTR) shares extended their losing streak Tuesday, and "Big Short" investor Michael Burry isn't making things easier. In a post on X Tuesday morning, Burry confirmed he's still holding put options on the data analytics company, reinforcing concerns about a potential AI bubble that emerged earlier this month.

The timing is interesting. Burry first disclosed his short position through his hedge fund Scion Asset Management just as Palantir was releasing blockbuster third-quarter results. He was also betting against Nvidia at the same time, which rattled investors already nervous about AI valuations.

The Earnings Picture Couldn't Be Stronger

Here's the thing: Palantir absolutely demolished expectations in Q3. The company posted adjusted earnings per share of 21 cents, crushing the 17-cent consensus. Revenue hit $1.18 billion versus the $1.09 billion analysts expected. These aren't marginal beats—they're significant.

The forward guidance was even more impressive. Palantir guided for fourth-quarter revenue between $1.32 billion and $1.33 billion, well above the $1.19 billion consensus. The company also raised its fiscal 2025 revenue outlook to $4.39 billion to $4.40 billion range, compared to analyst estimates of $4.17 billion.

Wall Street responded accordingly. Multiple analysts boosted their price targets following the report:

• BofA Securities analyst Mariana Perez Mora maintained a Buy rating and raised the price target from $215 to $255.
• Piper Sandler analyst Clarke Jeffries maintained an Overweight rating and lifted the target from $201 to $225.
• Mizuho analyst Matthew Broome maintained a Neutral rating but raised the target from $165 to $205.
• UBS analyst Karl Keirstead maintained a Neutral rating and increased the target from $165 to $205.
• Cantor Fitzgerald analyst Thomas Blakey maintained a Neutral rating and bumped the target from $155 to $198.

The consensus price target sits at $156.27, with targets ranging from a low of $20.00 to a high of $255.00.

Technical Setup Shows a Stock at a Crossroads

Palantir is trading within its 52-week range of $58.85 to $207.52. The stock has gained 122.2% year-to-date, which is remarkable, but it's currently experiencing a meaningful pullback from those highs.

The technical picture tells a nuanced story. Shares are trading roughly 7.6% below the 50-day moving average of $180.77, suggesting near-term bearish momentum. However, the stock remains about 20.7% above its 200-day moving average of $138.37, indicating longer-term strength hasn't evaporated. The relative strength index sits at 42.75, a neutral reading that doesn't scream oversold or overbought.

Key support is established at $164.50, which could act as a floor if selling pressure persists. Resistance looms at $171.80, a level that might challenge any recovery attempts. The stock is currently testing these support levels, and how it behaves here matters. A decisive break below $164.50 could signal further weakness ahead, while a bounce toward $171.80 resistance might indicate buyers are stepping back in.

At the time of writing, Palantir shares were trading 0.66% lower at $169.91.