Key Highlights
- Burry initiated fresh short positions in Oracle at $144.63 per share and Nebius Group at $211.77
- The investor had exited his prior Oracle short position earlier this week before re-establishing it
- His Palantir short position continues despite shares jumping nearly 30% following exceptional quarterly results
- Palantir’s Q2 revenue reached $1.94 billion, surpassing analyst projections
- Burry increased long exposure in Flutter Entertainment, Fiserv, Zoetis, and Mercado Libre
Michael Burry, the legendary investor who famously anticipated the 2008 financial crisis, has re-established a bearish position on Oracle while initiating a fresh short on Nebius Group. The hedge fund manager also maintained his negative stance on Palantir, despite the data analytics firm delivering impressive quarterly performance.
The investor entered a short position on Oracle at $144.63 per share. This move followed his exit from a prior Oracle short just days earlier, which reportedly generated significant returns. Burry indicated he would consider re-entry if market volatility normalized, which subsequently occurred.
Additionally, he established a direct equity short on Nebius Group at $211.77 per share. The fund manager opted against using options instruments due to implied volatility on Nebius put options exceeding 100%, rendering them prohibitively costly.
Burry’s investment thesis regarding cloud infrastructure and technology firms focuses on financial leverage. He has previously highlighted that numerous companies maintain long-term lease commitments that substantially exceed their present revenue levels.
Palantir Short Remains Active Despite Exceptional Performance
Palantir delivered second-quarter revenue of $1.94 billion, representing 93% year-over-year growth and exceeding Wall Street’s consensus estimate of $1.80 billion. Adjusted earnings per share reached 41 cents, topping the forecasted 35 cents.
The company’s US commercial segment revenue soared 149% to $764 million, while US government revenue climbed 90% to $809 million. Company leadership revised full-year revenue guidance upward to a range of $8.150 billion to $8.158 billion.
Share prices rocketed nearly 30% in response to these results. Nevertheless, Burry has maintained his bearish position without adjustment.
Wall Street analysts at Jefferies cautioned that Palantir’s current valuation provides minimal margin for error should growth decelerate or execution falter. Jefferies analyst Brent Thill noted the risk-reward profile appears unfavorable, as the stock price necessitates exceptionally robust and sustained growth to justify current levels.
Burry’s bearish thesis doesn’t depend on Palantir experiencing revenue declines. Instead, it requires only that growth momentum or market sentiment cool sufficiently to trigger valuation contraction.
Bullish Positions Demonstrate Selective Value Hunting
Despite maintaining bearish views on select technology stocks, Burry enhanced multiple long positions following recent earnings announcements.
He increased his Flutter Entertainment stake to a complete position after the company reported quarterly results. His Fiserv holdings expanded when shares retreated to $52, compared to his average entry point of $48.
Regarding Zoetis, Burry recognized weakening North American pet care spending trends but emphasized the company’s solid fundamental profile. He retained his Mercado Libre position at the current price of $1,782, above his average acquisition cost of $1,611, noting he would increase exposure if shares declined toward $1,500.
Burry exited his long Microsoft position and his remaining Oracle short during this update cycle, demonstrating his willingness to adapt when market dynamics shift. His Palantir short position remains active according to his most recent disclosure.
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