Bloomberg reports that in a series of 13F regulatory filings released on Monday, Michael Burry’s Scion Asset Management revealed that it had bought put options on Nvidia and Palantir, indicating a bearish stance on the two companies. The disclosures came just days after Burry posted a cryptic warning to retail investors about market exuberance on social media, including an image of his character from The Big Short movie and a warning that “sometimes, we see bubbles.”
Shares in Palantir, which had recently raised its annual revenue outlook, fell by 6.8 percent in morning trading following the news, as analysts pointed to the stock’s soaring valuation. Nvidia shares were also lower, slipping as much as 2.79 percent. Investor concerns have been on the rise for months, as a wave of circular deals involving OpenAI, Nvidia, and other AI-focused firms sparked worries that the AI boom is being artificially propped up. Burry’s bearish wagers on these companies have further fueled these concerns. (Read More)
