Michael Burry's Nebius Short Is Underwater After a 454% Revenue Quarter
The famed short-seller bet against the AI cloud company six days before it reported. The quarter answered some of his concerns -- but left the biggest one standing.
Overview
On Aug. 6, Michael Burry disclosed a short position in Nebius Group (NASDAQ: NBIS) at around $212 a share, a bet he described as larger than the one he placed against Oracle at the same time. Six days later, the artificial intelligence (AI) cloud company reported second-quarter results before the market opened on Wednesday.
The report did not go his way. Revenue rose 454% year over year to $582.3 million, and management reaffirmed its full-year guidance. The stock jumped about 34% to around $259 as of this writing -- about 22% above the price he disclosed shorting at.
Details
But a losing first week doesn't settle whether he's right. The more useful question, I'd argue, is which of Burry's concerns the quarter actually answered, and which one it left standing.
Source
Originally published at www.fool.com.