Meanwhile, Veteran analyst Stephen Guilfoyle credits Palantir’s growth to strong fundamentals, noting, “Sales are running wild as are margins. The commercial business is exploding. Cash flows are not just robust; they are enormous. The balance sheet is simply the greatest balance sheet I can remember seeing. The CEO is focused and aggressive.”

Michael Burry placed a $1.1billion bet that heavy hitter artificial intelligence companies Nvidia and Palantir will see a fall in their their share values.

Palantir CEO Alex Karp said short-sellers were betting against "one of the best businesses in the world."

Palantir shares fell about 3% in extended trading after earlier gaining as much as 7% following the report. The company had a price-to-sales ratio of 85 as of Friday — the highest in the S&P 500 Index.

Famed investor Michael Burry’s Scion Asset Management disclosed new bullish positions in Pfizer ( PFE ), Halliburton ( HAL ), Molina Healthcare ( MOH ), and Lululemon Athletica ( LULU) in its latest quarterly regulatory filing.