Renowned investor Michael Burry has expressed serious concerns about Palantir Technologies, likening its stock to a "sand castle" amid a significant downturn. He noted a "new lower low" with declining trading volume, suggesting a prolonged downtrend.

This comes as Palantir, once an AI darling, faces investor skepticism over its valuation. Meanwhile, Burry has increased his stake in China's Alibaba, seeing it as an undervalued AI leader.