All articles tagged with #michael burry
Hedge fund investor Michael Burry questions when the aggressive AI data-center buildout will end, criticizing hyperscalers such as Oracle, Alphabet (Google), Meta, Microsoft, Amazon and Nvidia for expansive capex and potential cash-flow strain. He warns of possible earnings restatements and depreciation masking costs, and likens current AI hype to past bubbles like the 1920s radio boom and the dot-com era.
Famed investor Michael Burry warned that a Bitcoin selloff could intensify into a self-reinforcing “death spiral,” potentially harming corporate holders, miners, and crypto stocks, per Bloomberg via his Substack post.
Michael Burry has bought GameStop not for its core business but for the leadership of Ryan Cohen, drawing a Buffett-like comparison and suggesting the potential for GameStop to resemble Berkshire Hathaway in the long run. Cohen owns about 9% of the company and has steered GameStop toward digital commerce, collectibles, and a Bitcoin investment, helping it outperform the market, yet the Berkshire analogy remains unproven and investors are advised to approach any GameStop bets with caution and a speculative mindset.
GameStop surged after CEO Ryan Cohen outlined a bold plan to grow the company from about $11B to over $100B, potentially via a large consumer/retail acquisition that Cohen acknowledged could be genius or a mistake. Investor Michael Burry urged a Berkshire Hathaway–style use of cash for a strong, cash-generating buyer, while the board tied Cohen’s pay to performance. With roughly $9B in liquidity and strategic store closures to fund higher-margin products, GameStop is taking bigger risks even as TipRanks’ AI rates it Neutral with a $25 target.
Michael Burry warns a reversal in the Japanese yen could weigh on U.S. stocks if capital flows swing back toward Japan as rates diverge, a dynamic echoed by a Wall Street Journal note that the NY Fed contacted counterparties on yen/USD. Morgan Stanley’s Michael Wilson also sees USDJPY fair value around 145, with a potential move toward 140, highlighting yen strength and rate differentials as ongoing tactical risks for equity markets.
Michael Burry stated on a Substack post that he owns GameStop and has been buying recently, signaling a long-term thesis and possible value near tangible book value. The disclosure sparked a rally as GME traded around $24.15 (up ~4%), with heavy volume and a surge in short-dated call options (strikes near $20–$25) as traders bet on more upside and link the move to meme-stock dynamics tied to Ryan Cohen.
Michael Burry revealed on Substack that he has been buying GameStop (GME), targeting a value around 1x tangible book value/1x net asset value and signaling a multi-year hold rather than a quick squeeze. He emphasizes governance and capital allocation under Ryan Cohen and is willing to wait years to see the story play out. The move comes as GameStop has rebuilt its balance sheet—liquid assets, cash, and even Bitcoin—creating a cushion that points to a renewed focus on valuation and cash generation rather than meme-driven hype.
Michael Burry argues in a Substack debate that the AI boom is unsustainable, warning that trillions spent by hyperscalers on chips and data centers will yield few durable gains and that AI could become commoditized; he uses Buffett's Hochschild-Kohn escalator tale to illustrate wasteful spending, singles out Nvidia and Palantir as overvalued poster children, notes Alphabet's slipping lead, and predicts a long downturn with weaker tech demand and employment.
Investor Michael Burry is betting against Oracle by owning put options and shorting its stock, citing concerns over its debt and aggressive cloud expansion, despite Oracle's recent gains driven by AI demand.
Michael Burry has been holding Valero Energy since 2020, betting on a potential revival of Venezuelan oil exports and infrastructure, which could benefit U.S. refiners and oilfield service companies as Venezuela's oil industry potentially recovers with increased U.S. involvement.
Renowned investor Michael Burry clarified that he is not shorting Tesla, despite calling its stock 'ridiculously overvalued,' and recent delivery estimates suggest a potential decline in Tesla's vehicle sales, amid a volatile year for the company.
The article discusses Michael Burry's prediction of a stock market crash in 2026, driven by AI stocks, but the author remains unconcerned, emphasizing that long-term investors can weather short-term downturns and highlighting their focus on AI-related investments like Amazon and Nvidia.
The S&P 500 has fallen for four consecutive days, led by tech stocks like Oracle and Nvidia, amid concerns over AI-related debt and a warning from investor Michael Burry about a potential market downturn due to increased household wealth in stocks and risky AI investments. Oracle's failed $10 billion debt deal and rising concerns over AI bubble risks contribute to the cautious market sentiment, with analysts highlighting potential overexuberance in data center spending and a shift away from the top-performing Magnificent Seven stocks.
Investor Michael Burry warns that the AI bubble, heavily driven by Nvidia's marketing, is unpredictable and may burst unexpectedly, drawing parallels to the dot-com crash, but emphasizes that timing such a collapse is impossible.
Investor Michael Burry warns of a potential AI bubble, highlighting concerns about overvaluation in companies like NVDA, PLTR, and ORCL.