Michael Burry bets on Lululemon while shorting Nvidia

Investor Michael Burry has engaged in high-stakes positioning involving Nvidia and Lululemon. Despite Nvidia’s recent quarterly results showing a 106% year-over-year revenue increase to $96.2 billion and exceeding market expectations, Burry maintained a bearish stance through short positions. However, Nvidia’s stock rose from approximately $210 to $230 following the report, driven by massive growth in its data center segment, which saw revenues rise 117% to $89 billion.

Simultaneously, Burry has pivoted his strategy regarding Lululemon Athletica Inc. He exited his position in Flutter Entertainment Plc to move proceeds into Lululemon, citing a compressed valuation and potential management issues that could make the company an acquisition target. While Lululemon shares faced recent volatility, Burry expressed urgency in the position. He also increased his stake in Zoetis Inc., describing the stock as ‘very cheap’ despite acknowledging the risk of further downside.