Jim Chanos, a prominent short seller, is doubling down on his bet against legacy and modern data centers, arguing that their low margins, high capital costs, and rapid GPU depreciation make them poor investments, especially as profits from AI are expected to flow from chip production rather than data center infrastructure. He warns of a potential market contraction similar to the dot-com bust and highlights risks such as unprofitable AI companies and high debt levels among hyperscalers.
Michael Burry, known for 'The Big Short,' responded to Palantir CEO Alex Karp's criticism by dismissing Karp's comments and reaffirming his bearish stance, which was based on a large put options position worth $912 million. Burry's recent actions and comments suggest he may have closed his short position against Palantir, despite publicly criticizing the company's valuation and business model. The dispute highlights ongoing tensions between short sellers and company executives amid Palantir's significant stock gains.
BofA Securities advises investors to consider shorting bonds of hyperscalers like Amazon and Alphabet due to concerns over their cash flow, but recommends caution against shorting the broader AI market.
Famous contrarian investor Michael Burry has made a significant bet against AI giants Nvidia and Palantir, betting that their high valuations and history of bubbles suggest their stocks may decline, echoing his past successful short positions like during the 2008 financial crisis.
An anonymous trader reportedly made $88 million by shorting Bitcoin just 30 minutes before President Trump's surprise tariff announcement, which caused Bitcoin to fall 17% and triggered the largest liquidation event in crypto history, raising questions about insider trading and market manipulation.
Apollo Global Management found a way to short First Brands' debt despite being on a blacklist, using complex arrangements that avoided owning the loans directly. This maneuver was part of a broader decline in First Brands' financial stability, which is expected to file for bankruptcy after its debt value plummeted over half in two weeks due to failed refinancing and financial concerns.
Jim Cramer advises short sellers of Kohl's to cover their positions, comparing the situation to the GameStop short squeeze, and argues that Kohl's stock is not justified by its fundamentals, suggesting the short interest has created an unsustainable bubble.
Tesla short sellers are poised to earn approximately $1.4 billion in paper profits following a 7.5% stock decline triggered by Elon Musk's announcement of a new U.S. political party and his feud with Donald Trump, reflecting concerns about Musk's focus on the company's future.
Stock futures are flat after a day of tech stock sell-off, with the market showing signs of bullish momentum through a 'golden cross' pattern, while short sellers face significant losses since April. Investors await key economic reports and trade deal updates amid ongoing market turbulence.
Elon Musk's public dispute involving Trump has increased volatility around Tesla, leading to a surge in short selling and potential risks for investors, amid broader concerns about Tesla's valuation and future prospects.
Tesla's stock plummeted 14%, leading short-sellers to profit around $4 billion, amid escalating tensions between Elon Musk and President Trump, which could have broader implications for Musk's businesses and regulatory scrutiny.
Spruce Point Capital Management has issued a strong sell report on Tempus AI, citing concerns over its financial practices, minimal AI revenue, related-party transactions, and overvaluation, estimating a potential 50-60% downside risk to its share price.
An analyst has disclosed a short position in Nvidia shares, suggesting a strategy to short the stock in 2025. The article reflects the author's personal opinions and is not intended as investment advice. It emphasizes that past performance does not guarantee future results and that the views expressed do not necessarily represent those of Seeking Alpha.
Super Micro Computer's stock surged in November and early December after recovering from a significant drop due to allegations of accounting manipulation and compliance issues by Hindenburg Research. The company has since addressed these concerns with an independent review finding no fraud, leading to investor relief and a short squeeze. Super Micro plans to implement recommendations for improved financial controls and compliance, which could further boost investor confidence.
Andrew Left of Citron Research has announced a short position in MicroStrategy, despite being bullish on Bitcoin, due to the company's stock price detaching from Bitcoin fundamentals. MicroStrategy's shares have surged as it continues to accumulate Bitcoin, but Left believes the stock is overheated. Doug Kass of Seabreeze Capital Partners also took a short position, indicating skepticism about the sustainability of MicroStrategy's recent stock price increase.
