Part 5/11:
One of the core themes Karp explored was the widespread misinterpretation of Palantir's business model and market value. He acknowledged that many analysts and industry experts are skeptical, labeling Palantir as overpriced and even shorting the stock. Notably, short sellers like Michael Burry have taken positions against Palantir—bets that have not paid off so far, with the company's stock outperforming despite the aggressive short campaigns.
Karp described these short-selling efforts as "market manipulation" partly driven by motivations to profit from falling stock prices. He emphasized that such positions are often based on outdated assumptions and that Palantir's numbers—such as a Rule of 114 (a measure of financial strength) and rapid revenue growth—defy conventional valuation metrics.