On July 7, Caterpillar declined 3.36% in regular trading, trading at $926.5/share, with turnover of $581 million, extending the pullback that began last week.
The decline continues the fallout from Michael Burry's announcement on July 1 that he initiated his first-ever short position in Caterpillar at $1,060.98, citing a price-to-sales ratio at its highest level in at least three decades. Burry simultaneously shorted Nvidia, Applied Materials, Tesla, and the iShares Semiconductor ETF, arguing that AI-linked stocks are overextended. On July 2, Caterpillar plunged 6.9% in a single session, its largest drop since April of last year.
The broader Construction Machinery and Heavy Trucks sector saw uniform selling pressure, with Terex down 3.89%, Cummins down 3.78%, Federal Signal down 3.29%, Westinghouse Air Brake down 2.32%, and PACCAR down 1.21%. Caterpillar had rallied approximately 86% in the first half on AI data center power demand tailwinds, and the current correction reflects ongoing market reassessment of elevated valuations tied to the AI infrastructure buildout thesis.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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