“`html
Michael Burry’s Bearish Bet on AI Stocks
Michael Burry, founder of Scion Asset Management, has taken a significant bearish position against Palantir Technologies (NASDAQ: PLTR) by purchasing 5 million put options valued at approximately $912 million during the third quarter of 2023. This comes as Burry expresses growing skepticism about the stock market, particularly the inflated valuations in the artificial intelligence sector, where stocks like Palantir have risen over 1,290% in the past five years.
In addition to his position against Palantir, Burry also acquired 1 million put options on Nvidia. Notably, this bearish bet was disclosed just as Palantir reported its earnings, raising questions about Burry’s timing and strategy. Palantir, which has seen a 156% increase in stock price this year, currently trades at around 300 times forward earnings, leading some analysts to label it overvalued.
“`
