Key Highlights
- Fresh short positions established in Oracle at $144.63 per share and Nebius Group at $211.77
- Oracle short position reopened after closing a profitable earlier bet this week
- Palantir short position maintained as shares jumped nearly 30% on earnings strength
- Palantir’s Q2 revenue reached $1.94 billion, surpassing analyst expectations
- Long portfolio expanded with increased stakes in Flutter Entertainment, Fiserv, Zoetis, and Mercado Libre
Michael Burry, the legendary investor who famously called the 2008 subprime mortgage crisis, has reinitiated a short position in Oracle while launching a fresh bearish wager on Nebius Group. His contrarian stance on Palantir continues unchanged despite the company’s impressive quarterly performance.
The investor established his new Oracle short at $144.63 per share, returning to the position mere days after exiting an earlier short trade that generated considerable returns. Burry had indicated he might reestablish the position if market volatility subsided, which subsequently occurred.
Additionally, Burry initiated a direct equity short on Nebius Group with an entry point of $211.77. The investor opted against using options instruments due to Nebius put options trading at implied volatility levels exceeding 100%, rendering them cost-prohibitive.
Burry’s bearish thesis on cloud computing and technology enterprises revolves around balance sheet leverage. His analysis suggests numerous companies maintain long-term lease commitments that substantially exceed their revenue generation capacity.
Palantir Short Position Maintained Through Earnings Surge
Palantir delivered second-quarter revenue of $1.94 billion, representing 93% year-over-year growth and exceeding analyst consensus of $1.80 billion. The company posted adjusted earnings of 41 cents per share, topping expectations of 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 increased full-year revenue projections to a range of $8.150 billion to $8.158 billion.
The stock experienced a dramatic rally of approximately 30% in response to these results. Nevertheless, Burry has maintained his bearish position without adjustment.
Investment analysts at Jefferies cautioned that Palantir’s current valuation provides minimal margin for error should growth rates decelerate or operational execution falter. Jefferies analyst Brent Thill characterized the risk-reward profile as unattractive, noting that maintaining current share prices demands exceptionally robust and sustained expansion.
Burry’s bearish thesis doesn’t necessitate revenue deterioration at Palantir. The position profits if either growth momentum decelerates or market sentiment shifts sufficiently to trigger valuation multiple compression.
Bullish Bets Demonstrate Selective Value Identification
Despite maintaining bearish positions on select technology companies, Burry increased exposure to multiple long holdings following their quarterly reports.
He upgraded his Flutter Entertainment stake to a complete position size after the company released earnings. His Fiserv holdings expanded when shares retreated to $52, below his $48 average cost basis.
Regarding Zoetis, Burry recognized weakening consumer spending trends in the North American pet care market but maintained conviction in the company’s underlying business quality. His Mercado Libre position continues at a current price of $1,782, trading above his $1,611 average entry point, with plans to increase holdings should shares decline toward $1,500.
Burry exited his long Microsoft position and closed his remaining Oracle short during this reporting period, demonstrating his willingness to adapt positions as market dynamics evolve. His Palantir short remains active according to his most recent disclosure.
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