US EditionThe Big Short’s New Bet: Burry Calls Accounting Fraud
Michael Burry claims hyperscalers understate depreciation by extending computing asset lifespans, inflating earnings by $176 billion industry-wide through 2028, affecting major AI firms.
- On Monday, Michael Burry, Scion Asset Management founder and investor, alleged hyperscalers understate depreciation to inflate profits and disclosed put options worth about $187 million against Nvidia and $912 million against Palantir Technologies as of Sept. 30, per a regulatory filing.
- Michael Burry, known from The Big Short, has warned this year about AI exuberance and recently revealed wagers against Nvidia and Palantir Technologies.
- Burry quantified the impact, estimating that from 2026 through 2028, understating depreciation by about $176 billion could inflate profits at Oracle and Meta Platforms by roughly 27% and 21%.
- Market trading days saw Nvidia rebound nearly 6% Monday after last week's drop, while Palantir Technologies popped almost 9%, prompting CEO Alex Karp to call Burry's wagers `super weird`.
- Uncertainty persists because CNBC could not independently verify the claims and has reached out to Oracle and Meta Platforms, while regulatory filing details on strike prices and expiration dates remain unspecified.
12 Articles
12 Articles
Big Short Michael Burry warns: Meta and Oracle may be hiding billions and fudging earnings by over 20%
Michael Burry financial fraud warning: Investor Michael Burry warns that major tech companies like Meta and Oracle may be inflating earnings by over 20% by understating depreciation on assets, potentially misleading investors about their financial health.
After predicting the crisis of the subprime, Michael Burry, the main hero of the film "The Big Short", attacks what he considers to be a new speculative madness. ...
The Big Short’s New Bet: Burry Calls Accounting Fraud
Burry’s claim is audacious: these AI darlings are dangerously overvalued. The heart of his argument boils down to a fundamental accounting disagreement. He alleges that other companies are overstating the useful life of AI chips
Mike Burry says Oracle will overstate earnings by 27% and Meta by 21% due to depreciation gimmicks
Michael Burry has accused two of America’s biggest tech players, Oracle and Meta, of using what he calls “depreciation gimmicks” to exaggerate their profits from the AI boom, according to CNBC. The Scion Asset Management founder said that the major cloud and AI infrastructure companies, what he called “hyperscalers,” are bending accounting rules to make their earnings look stronger than they really are. Burry warns of overstated profits in ORCL,…
Michael Burry, the investor who predicted the 2008 crisis — the Great Recession — and who recently shook the market with a low-tech bet, accuses some of the largest technology companies in the United States of using aggressive accounting to inflate their profits from the boom of artificial intelligence (AI). Through X, the also fund-founder Scion Asset Management and whose name became relevant after the tape “The Great Bet,” claimed that the “hy…
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