"The Big Short" investors said he believes hyperscalers like Oracle and Meta could "overstate" earnings by more than 20% in the next few years.

Main Article:

Michael Burry is sounding an awful lot like the investor [Jim Chanos] who shorted Enron.

He estimated that Meta, Google, Oracle, Microsoft, and Amazon — five hyperscalers and some of the biggest names in the AI trade — would “understate depreciation” by around $176 billion between 2026 and 2028.

“But it gets worse. More detail coming November 25th,” he added.

Additional Articles:

[CNBC] - ‘Big Short’ investor Michael Burry accuses AI hyperscalers of artificially boosting earnings

[AOL] - Michael Burry’s Latest Warning Could Be Bad News for CoreWeave

[BI, 8/26/25] - The guy who shorted Enron has a warning about the AI boom

  • redsand@lemmy.dbzer0.comEnglish
    2·
    19 hours ago

    Yes but the last time this AI bubble is what made him wrong. This time it appears he’s digging through paperwork for fraud and financial fuckery in the way he and Buffet are famous for.

    I remember him making predictions before that but they weren’t… As deep? Seems like he’s much more certain now, I’m guessing the round tripping we’re seeing is just the tip of the iceberg and he’s planning on reading some fillings that drop a week before the 25th.