Michael Burry Says Shorting Nebius Is “Like Shooting Fish in a Barrel.” Earnings Could Prove Him Right.
Quick Read – Burry shorted Nebius at $211.77 and Oracle at $144.63, calling both trades “like shooting fish in a barrel” ahead of Nebius’s Aug. 12 earnings. – Nebius posted 684% revenue growth and $1.9 billion in ARR, but long-term debt doubled to $8.4 billion while capex guidance climbed to $25 billion. – Burry’s shorts target AI companies borrowing billions against unproven long-term demand, not a broad bearish bet against artificial intelligence itself. – Momentum has been one of the defining themes of this bull market
Investors have rewarded companies tied to artificial intelligence with premium valuations, particularly those building the infrastructure powering the AI boom. In many cases, rising capital spending and growing debt have become secondary concerns so long as revenue continues climbing. That backdrop makes it easy to understand why betting against AI-related stocks has been such an unpopular trade.
Yet contrarian investor Michael Burry has built his reputation by making precisely those bets when market enthusiasm appears strongest. His latest target suggests he believes one of AI’s biggest winners has become too expensive to ignore. Burry Is Betting Against the AI Middlemen, Not AI Itself Since closing Scion Asset Management last year, investors no longer receive quarterly SEC portfolio disclosures showing Burry’s latest positions.