Michael Burry Market Bet: Is He Right?
- Michael Burry, the investor known for his prescient bet against the housing market before the 2008 financial crisis, is once again raising eyebrows with new investment moves.
- Burry's latest moves reflect concerns about potential consumer slowdowns and the impact of tariffs on the technology sector.
- Along with NVIDIA, Burry has also taken a bearish position on Alibaba (BABA), selling his previous stake and opening a put option worth $26 million.This move signals a...
Michael Burry, of “The Big short” fame, is betting against tech giants, sparking market intrigue. his significant put options against NVIDIA and Alibaba group signal a bearish outlook, driven by consumer slowdowns and tariff uncertainties—a stance that has investors on edge. This move away from his earlier bullish position on Alibaba, along with bearish bets on JD.com and PDD Holdings, underscores growing concerns about the technology and e-commerce sectors. Burry’s strategic shifts, especially the $90 million put option on NVIDIA, are attracting attention with his history of impactful market calls. News Directory 3 is keeping a close watch on these developments. Discover what’s next as earnings reports reveal the accuracy of his predictions.
Michael Burry Places Bearish Bets Against NVIDIA and Alibaba
Updated May 28, 2025
Michael Burry, the investor known for his prescient bet against the housing market before the 2008 financial crisis, is once again raising eyebrows with new investment moves. burry, who gained fame from the book and movie “The Big Short,” has recently revealed meaningful put option positions against tech giants NVIDIA and Alibaba Group.
Burry’s latest moves reflect concerns about potential consumer slowdowns and the impact of tariffs on the technology sector. His put option on NVIDIA, reportedly worth over $90 million, suggests he anticipates a decline in the company’s stock price. Options trading involves leverage and specific expiration dates, meaning the potential gains or losses could be substantial.
Along with NVIDIA, Burry has also taken a bearish position on Alibaba (BABA), selling his previous stake and opening a put option worth $26 million.This move signals a shift from his earlier bullish stance on the Chinese e-commerce giant. the decision appears linked to broader concerns about the impact of tariffs on Chinese retail stocks.
Burry’s bearish outlook extends beyond Alibaba. He has also established multi-million dollar put option positions in JD.com Inc. and PDD Holdings Inc.,further emphasizing his concerns about the impact of increased costs on businesses importing goods from China. PDD Holdings recently reported disappointing earnings, with revenues and earnings contracting compared to the previous year, causing its stock to drop nearly 15% in a single day.
“Sell.”
The connection between thes e-commerce businesses and NVIDIA lies in the expectation that reduced demand and increased uncertainty will lead to fewer expansion initiatives, ultimately lowering demand for chips and semiconductors. Whether Burry’s predictions will prove accurate remains to be seen, but investors are closely watching these developments during a critical earnings season.
What’s next
Investors will be closely watching upcoming earnings reports from Alibaba and JD.com to gauge whether they reflect the same trends seen in PDD Holdings’ recent results. These reports will provide further insight into the accuracy of Burry’s bearish predictions and the overall impact of tariffs on the technology and e-commerce sectors.