Michael Burry Just Made A Massive Move (What It Means For You!)
In a Nutshell
Michael Burry added shorts on Coreweave, Micron, Palantir, SOXX, Oracle, Nibius, and Caterpillar while going long on Lululemon and Molina Healthcare. His core thesis targets overvalued AI and semiconductor stocks like Palantir at 148x P/E and Coreweave losing $1.9B annually, with Palantir potentially dropping below $50 and Micron crashing to $100. He hedged his Nvidia short with calls ahead of earnings and emphasizes waiting for confirmation rather than fighting irrational momentum.
These notes were generated by AI and may contain inaccuracies.
Michael Burry recently added to multiple positions across both shorts and longs. These updates come from his Substack posts since he no longer manages Scion Management and is not required to file with the SEC. The updates may represent actual trade executions or simply thoughts on positions.
Burry bought Coreweave shorts. The stock gapped up from lows of $87 to highs of $110 after reporting earnings. Coreweave trades at a 24x P/E ratio while losing money, generating $7.59 billion in annual revenue but losing $1.9 billion. The company operates with significant debt burden, is quickly burning through cash, and 16 analysts have revised earnings downward for the upcoming period.
The stock has established resistance around $110-120 and support around $60-70. From recent highs near $110, it has already sold off 22% and is testing around $83. The stock shows a pattern of rallying then correcting repeatedly.
Burry added to his Micron short. The stock is currently consolidating between support at $900 and resistance near $1,000. Burry's thesis is that AI memory chip companies are cyclical and overvalued, with Micron eventually crashing back to $100 per share.
Burry added to his Palantir short. The stock experienced a 50% drawdown from highs of $207 to lows of $106 over an entire year of lower highs and lower lows. After better-than-expected earnings, it has retested overbought levels around $180. Palantir trades at a 148x P/E ratio with a $447 billion market cap despite only $3 billion in net income.
The downside potential from current levels is significant: 34% to retest recent lows, 42% to previous lows. Burry believes Palantir will eventually trade below $50.
Burry is shorting SOXX, the semiconductor ETF, rather than the 3x leveraged SOXS. This approach avoids the rate of decay and path dependency issues that come with 3x leverage, where a 20% semiconductor rally would result in 60% losses on leveraged positions.
Lululemon
Burry added to his Lululemon position at $115. The stock shows 77% upside to fair value according to analysts and trades at a 9.4x P/E ratio with growing revenue quarter-over-quarter. However, it has shown consistent lower highs and lower lows.
Molina Healthcare
Burry added to his Molina Healthcare (MOH) position. The stock has been inconsistent, moving from highs of $400 to lows of $131 and currently trading around $200. The company is losing $7 million with negative $144 million in some metric, and revenue is declining. Concerns include a potential class action lawsuit over materially false and misleading statements, potential reduction in Medicaid expansion population by 15-20% by 2029, and regulatory headwinds including state-directed payment forms and provider tax caps.
Burry bought calls on Nvidia to hedge his Nvidia short position ahead of earnings. Nvidia was up approximately 10% on the day after reporting earnings. He used calls rather than shares for this leveraged hedge approach.
Burry added to shorts in Oracle, Palantir, Nibius, and Caterpillar.
Markets can stay irrational longer than investors can stay solvent. No one is right 100% of the time, and even Burry has had to close positions due to irrational market behavior. When considering short positions, the downside potential should significantly outweigh the upside risk. Being late to a rally is preferable to being early to a selloff, emphasizing the importance of waiting for confirmation rather than trying to predict movements.
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