Nvidia · Fortune Technology
One analyst confirms his bet landed’t even matter
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Investor Michael Burry of “The Big Short” fame has a new short target in his sights: Caterpillar, the heavy-machinery giant that has surged thanks to the AI infrastructure boom.
Key facts
- The company’s stock had climbed about 172% over the past 12 months and more than 77% this year alone before Burry disclosed his position
- As of Thursday, shares fell by as much as 4%, hitting their lowest point since the middle of June at about $949 per share
- The company’ strong results from the first quarter, which saw sales jump 22% year-over-year to $17.4 billion and beat Wall Street expectations, adds to his argument
- Shares of GE Vernova are up more than 60% year-to-date, while shares of Vertiv are up 70% over the same period
Summary
Burry, the former hedge fund manager who famously predicted the 2008 subprime mortgage crisis and earned hundreds of millions of dollars for his investors in the process, said Caterpillar’s stock is now overvalued after a run-up that has seen its stock soar by more than 100% over the past year. “Caterpillar jumped out at me,” Burry wrote in a Substack post this week. The investor said he shorted Caterpillar at $1,060.98 per share Tuesday. Yet, not everyone agrees with Burry’s call.