Wall Street analysts raised concerns about Palantir's elevated valuation and famed hedge fund manager Michael Burry revealed a short position.

Many analysts are cautious about Palantir's valuation, but several are bullish on its growing commercial businesses as AI contracts ramp up.

Palantir CEO Alex Karp took on the critics during the company's third-quarter earnings call after the bell on Monday.

While praising Palantir's strong business, analysts remained concerned over the stock's elevated valuation.

"The idea that chips and ontology is what you want to short is bats--- crazy," Alex Karp said.

One analyst suggested stocks may be suffering from “rally exhaustion.”

Wall Street analysts raised concerns about Palantir's elevated valuation and famed hedge fund manager Michael Burry revealed a short position.

“Sometimes, we see bubbles,” Burry said in a recent X post. “Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”

Despite the splash his disclosure made, the famed "Big Short" investor is likely sitting on losses from those bearish bets.