Alright, let's dive into this Michael Burry news. The guy who made a killing shorting the housing market (and subsequently a movie about it) is now apparently super-bearish on Palantir. Scion Asset Management, his fund, just scooped up five million put options on PLTR. That's a hefty bet, especially considering PLTR's stock is, as the reports say, at an all-time high. What's Burry seeing that the market isn't?
The AI Bubble, According to Burry
Burry's not exactly subtle about his concerns. He dusted off his X account to drop some hints about an AI bubble, complete with Star Wars references. "These aren't the charts you are looking for," he posted, along with comparisons of cloud growth rates and AI deal webs. The implication? We're in 1999-2000 tech bubble territory all over again. 'Big Short' Michael Burry Is Back With a Bubble Warning After 2 Years
Now, let's unpack that. The cloud growth comparison is interesting. He's suggesting that the current AI hype cycle is masking a slowdown in the underlying infrastructure that supports it. Are companies really seeing the ROI on these massive AI investments, or are they just chasing the shiny new object? It's a valid question, and one that's hard to answer definitively with the data available to the public. (Private companies, of course, know exactly what their cloud spend is doing for them.)
And the AI deal web chart? That's a visual representation of the interconnectedness – and potential fragility – of the AI ecosystem. Nvidia, OpenAI, Oracle – they're all intertwined. If one domino falls, what happens to the rest? This isn't a new concern, but Burry's putting a spotlight on the potential systemic risk.
Palantir Under the Microscope
So, why Palantir specifically? The company has certainly benefited from the AI frenzy. They've positioned themselves as a key player in the AI-powered data analytics space, and their stock price reflects that optimism. But is it justified?
Palantir's valuation is… ambitious. It's trading at a significant premium to its peers. The market seems to be pricing in continued hyper-growth, but can they deliver? That's the million-dollar question – or, in Burry's case, the $912.1 million question (the market value of his PLTR puts, according to Whale Wisdom).
He's betting they can't. He's betting that the AI winter is coming, and that Palantir, despite its impressive technology, will be exposed as overvalued.
I've looked at hundreds of these filings, and the scale of Burry's put options is unusual, even for him. It's not just a small hedge; it's a major conviction play. It suggests he sees a significant downside risk in Palantir's stock. Michael Burry Is Super-Bearish On Palantir — With 5 Million Puts - Palantir Technologies (NASDAQ:PLTR)
Beyond Palantir: A Broader Strategy?
It's worth noting that Burry's bearishness isn't limited to Palantir. He also bought puts on Nvidia (worth $186.58 million, the report states). But it's not all doom and gloom. Scion also added positions in Lululemon, Molina Healthcare, and SLM Corp., and bought calls on Halliburton and Pfizer.
This suggests a broader strategy shift. He's rotating out of high-growth, tech-heavy names and into more stable, value-oriented stocks. Is he anticipating a market correction? Possibly. Is he simply rebalancing his portfolio? That's also a possibility. Investment strategies are complex, and we only see the snapshot revealed by these filings.
The move into healthcare (Molina, Pfizer) and consumer staples (Lululemon) could be interpreted as a defensive maneuver, positioning the portfolio for a potential economic slowdown. Halliburton, on the other hand, is a bet on continued energy demand. It's a mixed bag, but the overall theme seems to be caution.
So, What's He Really Saying?
Burry's bet against Palantir isn't just about one company. It's a statement about the overall market environment. He's signaling that the AI hype has gone too far, and that a reckoning is coming. Whether he's right remains to be seen. But one thing's for sure: when Michael Burry makes a move, the market listens.
