Michael Burry has placed a new major bet against several stocks listed on Wall Street, days after his latest warning that investors face the risk of a market crisis similar to the one in 1987.

For anyone who needs a reminder, that crisis erupted with a massive crash that hit Wall Street on October 19, 1987, when the Dow Jones Industrial Average plunged 22.6% and the U.S. stock market wiped out roughly $500 billion in market capitalization in a single day. The violent sell-off rippled through global equities, with panic spreading rapidly to markets around the world.

That episode, which became one of the darkest chapters in the history of American finance, could repeat itself, according to Michael Burry. So much so that Mr. Big Short — as he is known for betting against the subprime mortgage market and anticipating the 2008 global financial crisis — has upped the ante against one specific stock.

Michael Burry goes against the grain and rebuilds his short against Palantir

On Monday, August 10, 2026, it emerged that Michael Burry had further reinforced his short position against Palantir Technologies Inc. (PLTR), restoring out-of-the-money put option positions.

The move came at a time when shares of the AI software company continue to trade near their all-time highs.

Burry himself disclosed the decision, writing in his Cassandra Unchained report that he had bought put options on PLTR expiring in March 2027, with a strike price in the low-to-mid $100s.

The move followed Burry’s partial covering of his short position when Palantir was trading around $107.

According to the report, Mr. Big Short took advantage of a drop in implied volatility, which helped push option premiums back to their lowest levels in months.

His choice to rebuild the bearish position on the AI company was also driven, he wrote, by the fact that the shares had returned to trading at nearly 69 times sales.

Burry’s bets against AI stocks and his fear of a 1987-style crash

In recent months Burry has repeatedly drawn attention with his large short bets against AI stocks.

He has not, however, made headlines only with his short sales, since he has also placed some bullish bets.

That said, what has prevailed is pessimism toward equity markets, especially toward AI stocks, which in his view are the object of buying not justified by fundamentals.

That helps explain the remark last week in which the billionaire investor wrote that he fears markets could relive the Black Monday crash of 1987, which was triggered by fears of a recession similar to the Great Depression.

It is worth noting that the anxiety which set off the massive selling that sank Wall Street never materialized. The crash nonetheless triggered a series of negative consequences, including layoffs in the financial sector and a sharp drop in the number of IPOs.

Recalling that episode, Burry drew a comparison with the current situation, writing in his Substack post that he “continues to believe it is possible we are near a significant top, and perhaps a 1987-type crash.”

Mr. Big Short added, however, that “the fact that the S&P 500 is hitting new highs will probably attract fresh liquidity into the market.”

He, though, is not willing to change his mind, having reiterated that he continues to bet against the iShares Semiconductor ETF (SOXX) and against shares of Micron, Nvidia, Caterpillar, Palantir, Tesla, and Applied Materials.

Why Burry thinks Palantir’s intrinsic value is below $1 over the long term

The Palantir news came in the last few hours, despite the pressure markets are exerting against those who have opened bearish positions on the stock — especially following the release of strong earnings, fueled by surging demand for the company’s Artificial Intelligence Platform (AIP) from both commercial and government customers.

Palantir has in fact seen impressive revenue and profit growth, which immediately sparked a jump in its shares.

The rally was strong enough to force short sellers into a defensive stance, while renewed market enthusiasm for artificial intelligence pushed valuation multiples to extreme levels.

But Michael Burry has just reaffirmed his bearish view on Palantir stock — indeed, strengthening it.

Mr. Big Short believes the positive narrative around the company’s business conceals deep structural risks.

Noting that over the past year Palantir granted its employees 31.3 million shares, worth roughly $5 billion — about six times its stock-based compensation expense — Burry said Palantir has the widest accounting gap among the 66 companies he recently analyzed.

The investor also observed that non-cancelable contractual commitments to purchase infrastructure, kept off the balance sheet, have more than tripled since the start of the year, leading him to conclude that the intrinsic value of Palantir shares, over the long term, is below even $1.

Palantir shares are trading around $175, after a rally of nearly 8% over the last five trading sessions and a gain of more than 31% over the past month. Over the last three months, the trend amounts to a rise of almost 29%, while year-to-date the performance remains decidedly weak, at a decline of about 1.4%.

Editor’s note

This article was originally published in Italian on money.it by Laura Naka Antonelli on August 11, 2026 as «Perché Michael Burry ha rafforzato la scommessa short su Palantir. L’alert sulla crisi come nel 1987». It has been translated and adapted for an international audience by the Money.it International desk.