Michael Burry Buys Puts on NVDA, BABA and Baidu

Moz Farooque

Fri, May 16, 2025, 1:19 PM 1 min read

The 'Big Short' Michael Burry's Scion Asset Management is betting connected a sell-off successful large tech namesbuying bearish enactment options connected Nvidia (NASDAQ:NVDA), Alibaba (NYSE:BABA), Baidu (NASDAQ:BIDU), JD.com (NASDAQ:JD), PDD Holdings (NASDAQ:PDD) and Trip.com (NASDAQ:TCOM)after cutting its portfolio from 13 to 7 stocks successful Q1, according to a caller 13F filing.

• Warning! GuruFocus has detected 4 Warning Signs with NVDA.

Scion's filing shows the money bought puts that nett if these names slide, adjacent arsenic it doubled its involvement successful Estee Lauder (NYSE:EL) to 200,000 shares, a notable determination fixed EL is down implicit 50% successful the past year. At 4th end, Scion oversaw astir $155 million, a fraction of rival funds, underscoring the concentrated, high-conviction quality of Burry's latest pivot.

Burry's estimation from his 2008 housing-market stake lends value to his presumption that the AI frenzy astir NVDA and the post-COVID rally successful Chinese tech whitethorn person tally up of fundamentals.

While nonstop onslaught prices and maturities weren't disclosed, the puts awesome helium sees constricted upside oregon adjacent downside riskparticularly arsenic Chinese regulators and U.S.China tensions unreality maturation forecasts for BABA, BIDU, JD, PDD and TCOM.

On the different hand, his EL presumption suggests a classical turnaround play: the beauty-products giant's near-term struggles could acceptable the signifier for outsized gains if user spending rebounds.

Why It Matters: Burry's dual strategyshorting high-flying tech via puts portion loading up connected beaten-down EL equityhighlights a displacement from maturation to worth and whitethorn presage broader marketplace cracks.

This nonfiction archetypal appeared connected GuruFocus.