"Scion's Q3 disclosure showed put options on 1 million NVDA shares, with put options on 5 million PLTR shares. A put refers to an options contract that allows the buyer to profit when share prices decline. Palantir's CEO, Alex Karp, called it a "bats-t crazy" move. Nvidia also responded to Burry's tirade against AI, with Big Banks continuing to slap higher price targets on these companies."
"Morgan Stanley recently raised its price target on PLTR stock to $205 from $155. Bank of America raised its PT to $255. For NVDA stock, Morgan Stanley put a $235 price target, with many other firms having their price targets well above $200. So who's actually right? Let's take a look at why Michael Burry is betting against these companies while Wall Street still seems largely optimistic about them."
"Burry has made on-and-off bearish bets against the stock market multiple times in the recent past. He made several comments against tech stocks, with a sudden one-word tweet "Sell" back in January 2023. Burry admitted he was wrong back then, as the market has shown no sign of slowing down. Wall Street is bidding up these stocks as their financial statements show they've been making a killing."
Michael Burry has taken aggressive bearish positions against AI-related stocks, focusing on Nvidia (NVDA) and Palantir (PLTR). Scion's Q3 disclosure showed put options on 1 million NVDA shares and 5 million PLTR shares, allowing profit if share prices fall. Scion's deregistration echoes a prior tactic from 2008. Palantir CEO Alex Karp called the move "bats-t crazy." Major banks continue to raise price targets, with Morgan Stanley and Bank of America boosting PLTR targets and Morgan Stanley assigning a $235 target to NVDA. Valuation concerns, especially for PLTR, underpin the bearish rationale.
Read at 24/7 Wall St.
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