Michael Burry Warns of Tech Giants Understating Depreciation Impacting Profits

Michael Burry, known for predicting the 2008 financial crisis, has raised concerns about major tech companies potentially understating depreciation, leading to inflated profits. He highlighted that extending the useful life of assets could result in a $176 billion profit overstatement. This warning has sparked discussions about the impact on companies like Oracle and Meta. Morgan Stanley and Bank of America have also issued warnings about the potential negative effects of underestimated depreciation on tech giants' profitability.

Latest News

11-12
Michael Burry Sounds Alarm on $176B Depreciation Gap among Tech Giants
Michael Burry Sounds Alarm on $176B Depreciation Gap among Tech Giants
11-11
"Big Short" Burry Issues New Warning: Tech Giants Inflate Profits by Extending Asset Lifespans
"Big Short" Burry Issues New Warning: Tech Giants Inflate Profits by Extending Asset Lifespans
11-11
Michael Burry Doubles Down On AI Bubble Claims As Short Trade Backfires: Says Oracle, Meta Are Overstating Earnings By 'Understating Depreciation'
Michael Burry Doubles Down On AI Bubble Claims As Short Trade Backfires: Says Oracle, Meta Are Overstating Earnings By 'Understating Depreciation'
11-11
著名对冲基金经理Michael Burry批评美大型科企低估折旧成本提振盈利
著名对冲基金经理Michael Burry批评美大型科企低估折旧成本提振盈利
11-11
“大空头”炮轰科技巨头诈欺:人为低估折旧抬高利润,甲骨文盈利或被夸大26.9%、Meta夸大20.8%
“大空头”炮轰科技巨头诈欺:人为低估折旧抬高利润,甲骨文盈利或被夸大26.9%、Meta夸大20.8%
11-11
Michael Burry Warns of $176 Billion Depreciation Understatement by Tech Giants
Michael Burry Warns of $176 Billion Depreciation Understatement by Tech Giants
11-11
“大空头”切换“战斗模式”!Burry:科技巨头“低估折旧导致利润虚高”
“大空头”切换“战斗模式”!Burry:科技巨头“低估折旧导致利润虚高”
11-11
"Big Short" Michael Burry Shifts to "Battle Mode": Tech Giants' Profit Overstatements Due to Underestimated Depreciation—Oracle by 26.9%, Meta by 20.8% by 2028
"Big Short" Michael Burry Shifts to "Battle Mode": Tech Giants' Profit Overstatements Due to Underestimated Depreciation—Oracle by 26.9%, Meta by 20.8% by 2028

User Discussion

I short a stock when there is negative news flying in the markets... 3 -10 will recover
avatarkoolgal
11-14
🌟🌟🌟Michael Burry shot to fame for predicting the 2008 US housing market crash & profiting massively by shorting mortgage backed securities. For small investors like me, shorting can be dangerous. The Big Short can become The Big Ouch. When you short a stock,your maximum gain is capped but your losses can be infinite. If the stock rallies, you are forced to buy back at higher prices. Shorting requires margin. If the trade moves against you, brokers can demand more collateral or liquidate your position often at the worst possible time. The opposite of Michael Burry's Big Short? The Big Long. While Burry bet against the system, I bet on its resilience. He saw collapse, I see conviction. He shorted chaos.  I hold through clarity. While Burry profited from shorting, I prospered throu
avatarAN88
11-14
but a reputable company. keep long term
avatarSacen
11-14
Isn't put gain premium? So he would have not paid any premium but gain premium and purchased Nvidia cheaper if it hit his strike price at expirey.
I've made tons of profit shorting.  but you must be careful not to get liquidated.  keep lots of extra cash and maintain healthy margin requirements to prevent liquidation. speaking of which tiger brokers charges around 100% interest on shorts, but they dont even tell us the exact interest rate, it should be clearly shown before shorting.
avatarL.Lim
11-13
I strongly believe that there has to be some logic to Burry's decision. On my part, I find Palantir to be overhyped and gassed up by individuals who are driven by the hype, and maybe has ties to shady individuals involved in the white house. The fact that the CEO guy constantly says questionable things about surveillance vapidly and recently tried to play it off with the pathetic excuse of not wanting to lose to China, sounds like he has no clue about how to ethically do things. I believe that such businesses will start to fall to the wayside when a competitor pops up with stronger conduct. That, or unsavoury news will pop up about the management, and PLTR will be dumped by investors.
Never like this guy
Sau kong
avatarShyon
11-13
I’ve always found Michael Burry’s contrarian plays fascinating, but his $NVIDIA Corp(NVDA)$ and $Palantir Technologies Inc.(PLTR)$ shorts remind me how risky it is to fight market momentum. 13F filings don’t reveal timing, so it’s hard to know if he profited or not. Personally, I take his moves as a signal to stay cautious, not as a cue to follow — shorting top AI names in a strong bull run can backfire quickly. I’ve shorted before, mainly through inverse ETFs or puts, but always with strict risk limits. I cap exposure below 2% of capital and set tight stops because shorts can move against you fast. For me, it’s a tactical play, not a long-term bet. Before entering, I wait for signs of exhaustion — s

🎁Michael Burry Closes His Fund After Bold NVDA Put Bet – Have you ever shorted a stock?

Hi, Tigers!Michael Burry — yes, the guy Christian Bale played in The Big Short — is once again back in the headlines. His firm Scion Asset Management has reportedly de-registered as an SEC-registered hedge fund, signalling a major shift in his operation. At the same time, filings show large put-option bets against $NVIDIA(NVDA)$ and other AI-linked stocks.Before we chase the headline, three quick reality checks:13F filings (or similar) only show holdings at quarter-end; they don’t reveal when the positions were initiated or closed. Thus, the profit or loss of the short bets is ambiguous. For example: if he built the NVDA short early in Q1 when NVDA dropped ~19.3% then closed before the rebound, profit plausible; if he held into Q2 when NVDA rose ~
🎁Michael Burry Closes His Fund After Bold NVDA Put Bet – Have you ever shorted a stock?