Burry's Flutter Stocks is a BUY! + Burry's Bets & Shorts
Summary
Sven discusses Michael Bur's bearish market outlook, which predicts a 1987-type crash. Bur believes the market is in a huge bubble, evidenced by historical low dividend yields and earnings distorted by stock-based compensation and "circular investing." Sven explains that this bubble is creating a house of cards that will lead to an "ugly" outcome when it bursts. He notes that the market is at all-time highs, but underlying fundamentals are weak. Sven also mentions that Bur is shorting various companies, including Oracle, semiconductors, Palantir, Micron, Nio, and Caterpillar, but is ready to cut losses if positions move against him, doing well on most except Nvidia.
Sven then shifts focus to specific stocks:
Mentioned Stocks
Reasoning: Sven reports that Michael Bur is shorting Micron, among other semiconductor and tech stocks, as a bet against the perceived market bubble. Sven highlights that Bur is doing well on most of his short positions.
Reasoning: Sven explicitly states he is not buying Amazon (among other hyperscalers like Google and Microsoft). His reason is a concern about the long-term depreciation of investments weighing on net income.
Reasoning: Sven reports that Michael Bur is shorting Nvidia, among other semiconductor and tech stocks, as a bet against the perceived market bubble. He notes that Nvidia is an exception where Bur is not doing well on his short position.
Reasoning: Sven reports that Michael Bur is shorting Palantir, among other semiconductor and tech stocks, as a bet against the perceived market bubble. Sven highlights that Bur is doing well on most of his short positions.
Reasoning: Sven reports that Michael Bur previously bought PayPal at 42 and that it is now up 43%. Sven mentions he has 'some of these in the quadrant that we are following,' indicating he is monitoring it but not explicitly stating a personal buy or recommendation.
Reasoning: Sven reports that Michael Bur is shorting Nio as part of his strategy to bet against the market bubble. Sven highlights that Bur is doing well on most of his short positions.
Reasoning: Sven explicitly states he is not buying Microsoft (among other hyperscalers like Google and Amazon). His reason is a concern about the long-term depreciation of investments weighing on net income.
Reasoning: Sven explicitly states he is not buying Google (among other hyperscalers like Microsoft and Amazon). His reason is a concern about the long-term depreciation of investments weighing on net income.
Reasoning: Sven reports that Michael Bur previously bought Adobe at 193 and that it is now up 34%. Sven mentions he has 'some of these in the quadrant that we are following,' indicating he is monitoring it but not explicitly stating a personal buy or recommendation.
Reasoning: Sven reports that Michael Bur is shorting Oracle, among other semiconductor and tech stocks, as a bet against the perceived market bubble. Sven highlights that Bur is doing well on most of his short positions.
Reasoning: Sven reports that Michael Bur is shorting Caterpillar as part of his strategy to bet against the market bubble. Sven highlights that Bur is doing well on most of his short positions.
Reasoning: Sven reports that Michael Bur previously bought Lululemon and that it is now up 20%. Sven mentions he has 'some of these in the quadrant that we are following,' indicating he is monitoring it but not explicitly stating a personal buy or recommendation.
Reasoning: Sven reports that Michael Bur previously bought JD and that it is now up 29%. Sven mentions he has 'some of these in the quadrant that we are following,' indicating he is monitoring it but not explicitly stating a personal buy or recommendation.
Reasoning: Sven discusses Flatter Entertainment's potential as a 'bet' for a 2x-3x upside, contingent on government intervention favoring dominant companies. He notes a margin of safety from its international brands and potential sale value. However, Sven explicitly states it doesn't fit his value investing style due to its nature as a gambling company, high leverage from acquisitions, and un-staggering revenue growth. The company reports net losses and rising debt, with significant restructuring costs and depreciation of acquired intangibles. Sven highlights the valuation of its Fanduel acquisition at $31 billion, double its current market capitalization.
Reasoning: Sven reports Michael Bur's sentiment that Mercado Libre 'will be nice at 1400' and generally refers to it as 'good.' Sven does not provide his own explicit sentiment or action for this stock, but acknowledges Bur's positive view.