Michael Burry Reopens Oracle (ORCL) Short Position and Bets Against Nebius

Key Takeaways

Table of Contents

Burry initiated fresh short bets against Oracle at $144.63 and Nebius Group at $211.77
The investor exited his prior Oracle short position earlier this week before jumping back in
Despite Palantir’s stock jumping nearly 30% on impressive earnings, Burry maintains his short position
Palantir’s Q2 revenue hit $1.94 billion, exceeding analyst projections
Burry increased exposure to Flutter Entertainment, Fiserv, Zoetis, and Mercado Libre on the long side

The investor who famously called the 2008 subprime mortgage crisis, Michael Burry, has resumed his bearish stance on Oracle while simultaneously launching a new short against Nebius Group. Notably, he’s maintaining his contrarian position on Palantir despite the data analytics firm’s exceptional quarterly performance.

Burry established his renewed Oracle short at a price point of $144.63 per share. This move followed closely behind the closure of his previous Oracle bet, which he indicated generated meaningful returns. He had suggested the possibility of re-establishing the position if market volatility subsided, which ultimately materialized.

Oracle Corporation, ORCL

Additionally, he initiated a traditional equity short on Nebius Group at $211.77 per share. Rather than employing options strategies, Burry opted for direct equity shorting because implied volatility on Nebius put options had climbed above 100%, rendering them prohibitively costly.

His bearish thesis on cloud computing and technology companies revolves around balance sheet leverage. Burry has previously highlighted that numerous companies maintain long-term lease commitments that significantly exceed their present revenue levels.

Palantir Short Position Remains Active Following Earnings Beat

Palantir delivered second-quarter revenue totaling $1.94 billion, representing a 93% year-over-year increase that surpassed Wall Street’s consensus estimate of $1.80 billion. The company’s adjusted earnings reached 41 cents per share, topping the anticipated 35-cent figure.

Revenue from US commercial operations skyrocketed 149% to reach $764 million. Meanwhile, US government revenue climbed 90% to $809 million. The company’s leadership increased their full-year revenue outlook to a range of $8.150 billion to $8.158 billion.

The stock price rocketed approximately 30% in response to these results. Nevertheless, Burry has chosen to maintain his bearish position unchanged.

Investment analysts at Jefferies cautioned that Palantir’s current market valuation provides minimal cushion for any deceleration in expansion or operational missteps. Analyst Brent Thill emphasized that the risk-reward profile appears unattractive since the stock price demands exceptionally robust and sustained growth momentum to justify current levels.

Burry’s bearish thesis doesn’t necessarily depend on Palantir experiencing revenue declines. Rather, it simply requires growth rates or investor sentiment to moderate sufficiently for the valuation multiple to contract.

Bullish Bets Demonstrate Selective Optimism

Despite his pessimistic outlook on certain technology stocks, Burry has increased his allocation to multiple long positions following recent earnings announcements.

He upgraded his Flutter Entertainment stake to a complete position size after the company reported results. He also augmented his Fiserv holdings when the stock retreated to $52, compared to his average cost basis of $48.

Regarding Zoetis, Burry recognized weakening consumer spending on pets in North America but maintained that the underlying business remains robust. He retained his Mercado Libre position with shares trading at $1,782, above his average acquisition price of $1,611, and indicated he would increase the position if prices declined toward the $1,500 level.

Burry eliminated his bullish Microsoft position and exited his remaining Oracle short during this same reporting period, demonstrating his willingness to pivot when market dynamics shift. His Palantir short position continues to remain active according to his most recent disclosure.

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