Michael Burry of ‘The Big Short’ fame is known for predicting the 2007-2008 housing crisis and financial crash. Now, the former hedge fund manager — who’s earned a reputation for spotting potential bubbles — argues in a recent Substack that Wall Street has been overstating tech earnings by 42% over the past decade (1).
This comes at a time when the AI boom has led to historic highs for tech stocks, which is simultaneously stoking fears of a bursting AI bubble (2).
Burry’s comments aren’t off the cuff. He came to this conclusion after analyzing more than 1,000 annual reports from Nasdaq 100 companies going back 10 years.
“Where there is money to be made, there is manipulation,” he writes in his Substack, called Cassandra Unchained (1).
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