Michael Burry's Scion Mgmt buys $1B in puts on NVIDIA and Palantir
Burry was immortalized as the short seller depicted in the movie, Big Short. Now he's making a massive bet on a new bubble.
https://www.msn.com/en-us/money/savingan...
Palantir has dropped 10% in the last 2 days. NVIDIA is down close to 8%.
18 Replies
I think AI is bubbling up but betting against NVIDIA is like betting against the house. They aren't the ones panning for gold they are selling the shovels
I think AI is bubbling up but betting against NVIDIA is like betting against the house. They aren't the ones panning for gold they are selling the shovels
And what happens to the market for shovels when there is no gold ?
I acknowledge that NVIDIA makes the best shovel and those are still needed for other things. But NVIDIA is only about 15% of Scion's put options. Palantir is the bulk of it.
i think he still has a very good point
its obv over priced atm but bit lazy to only short based on that alone. why pick some of the best companies to short just because they are over valued?
look at what happen to all the people short tesla along the way (RIP)
good companies that are over valued that can keep finding ways to grow and keep going up big time
better to short very bad companies that are over valued that have broken business models and cant find a way to grow
Palantir is down another 7% today.
Michael Burry is cementing his reputation.
It’s hard to win with shorts when the government keep printing trillions with deficits .
Nvidia cant maintain its rate of growth because there simply isn't enough capital elsewhere to fuel it anymore. It's a 5T company when the entire world is a little over 100T.
They've also had a perfect storm of gaming, AI dominance and crypto mining and even if that continues, they can't match the returns of the last 5 years. I think that also extends to most other tech stocks and SPY in general right now. Shorting is generally always bad but the risk/reward for that particular stock right now is horrific.
i think he still has a very good pointits obv over priced atm but bit lazy to only short based on that alone. why pick some of the best companies to short just because they are over valued?look at what happen to all the people short tesla along the way (RIP) good companies that are over valued that can keep finding ways to grow and keep going up big timebetter to short very bad
Yes, the best play is to find companies where the story is BS. PLTR has substantial revenue and solid customers (the govt).
almost 50% of the stocks are overpriced but its been said since covid its been just slingshotting
Burry was immortalized as the short seller depicted in the movie, Big Short. Now he's making a massive bet on a new bubble.
https://www.msn.com/en-us/money/savingan...
Palantir has dropped 10% in the last 2 days. NVIDIA is down close to 8%.
Mike is getting hammered today
Palantir is down 25% this month. From 207 to 155.
Burry seems like a real guru.
I think AI is bubbling up but betting against NVIDIA is like betting against the house. They aren't the ones panning for gold they are selling the shovels
He literally made his reputation by betting against houses 😃
Close. He made his reputation betting against securities which bundled adjustable subprime mortgages or MBS.
He convinced Goldman Sachs to invent the investment which allowed him to bet against MBS. He paid Goldman a fee to allow him to bet against Goldman and their portfolio of MBS. They were arrogant and looked at is as free fee income.
It's a David and Goliath story. A dude with vision, an affinity for math and the courage of his convictions against the lords of Wall St. He won. We like stories when courage prevails.
