Michael Burry, known for his bearish market views, has recently made significant investments in undervalued stocks like PayPal, Lululemon, Mercado Libre, Fiserv, Molina Healthcare, MSCI, and Zoetis. He is simultaneously shorting popular AI-related stocks such as Nvidia, Oracle, and semiconductor ETFs, betting against the current AI hype. This article breaks down his buys, shorts, and the rationale behind his contrarian strategy.
Michael Burry, the famously bearish investor, has been making some very specific and aggressive moves in the stock market recently. In this article, we will break down the stocks he has publicly disclosed buying, the reasons behind these purchases, his short positions, and what we can learn from his strategy.
While Burry is known for his apocalyptic warnings, his actual trades and stock picks tend to be more insightful. He believes many quality stocks have been unfairly sold off as investors chase the biggest AI names, especially semiconductor stocks. Burry sees this rotation as an opportunity to buy solid companies at bargain prices.
PayPal is one of the original digital payment companies, powering payments on thousands of websites and owning popular apps like Venmo and Braintree. Despite being aggressively sold off in recent years, PayPal remains a cash-generating powerhouse:
Burry considers PayPal a cornerstone of his thesis on bombed-out software and payment stocks, buying it as a full-sized position. He believes the selloff was driven by AI fears rather than fundamental problems.
Lululemon is a premium athletic apparel brand known for high-end yoga pants and expanding into running, tennis, training, and men's gear. Key points:
Burry has built a full-size stake in Lululemon, viewing it as a quality brand left for dead while money chases AI.
Mercado Libre is Latin America's leading e-commerce and fintech company, combining marketplace, shipping, and digital payments:
Burry bought a full position after the stock dropped 13% on earnings, calling it a clean long-term winner trading at a discount due to international exposure.
Fiserv is a major payments technology company, processing payments for small businesses and running technology for thousands of banks. Highlights:
Burry calls Fiserv a "dog of a stock" but bought it because of new leadership and its hated status.
Molina Healthcare specializes in government health programs like Medicaid and Medicare:
Burry likens Molina to an early-stage Geico, undervalued with a clear path to long-term earnings growth.
MSCI builds indexes and analytics tools used by most retirement accounts:
Burry sees MSCI as a quality name dumped due to technical pressures unrelated to fundamentals.
Zoetis is the largest animal health company globally, producing medicines and vaccines for pets and livestock:
Burry calls Zoetis a "fat pitch"—an easy, high-quality opportunity requiring patience.
Burry calls Nvidia the most concentrated way to bet against the AI trade. His concerns:
He compares Nvidia to Cisco before the dot-com crash. Despite being in the red on this position, he holds strong.
Burry dislikes Oracle for taking on massive debt to build data centers for AI, which he believes is unnecessary and possibly driven by ego. He suspects Oracle may be overstating earnings through accounting choices. The short has been profitable so far.
Burry is short the semiconductor fund SOXX, which holds blue-chip semiconductor stocks. He calls it a pure form of overvaluation, trading at twice the earnings multiple of the broader tech index and 43% above its long-term trend at one point. He sees the rally as tied to Korean chip spending and believes a correction is coming.
He is also short Micron, calling it the definition of cyclical with 34 drops of more than 30% in 42 years and poor long-run returns. He attributes the recent rally to fear of missing out and public commitment bias.
In the fight against cancer, the immune system is the body's greatest ally, but tumors often evade detection, becoming invisible to immune defenses. Oncolitics Biotech has developed Polaro Rep, a first-in-class double-stranded RNA immunotherapy designed to unmask cancer cells and reactivate the immune system.
Oncolitics Biotech offers a novel approach to one of oncology's toughest challenges by unmasking cancer cells to the immune system. With multiple fast-track designations and promising early data, it may warrant attention from those interested in cancer immunotherapy.
Michael Burry's recent moves highlight a contrarian approach to investing, focusing on undervalued quality stocks while shorting overhyped AI-related names. Meanwhile, innovative biotech companies like Oncolitics Biotech are pushing the boundaries in cancer treatment. Investors should conduct their own due diligence and consider these insights carefully.
