Behind the video
Nobody Should Be Listening To Burry
Overall Thesis
The hosts criticize Michael Burry's short Nebius and long Lululemon positioning, arguing that investors should examine underlying business and consumer evidence instead of following famous investors. They see AI as a major investment opportunity that many market participants underestimate, while expressing skepticism about Lululemon and buying Nike.
Narratives
The hosts argue that the data they reviewed did not support a strong Lululemon quarter, making Burry's long position difficult to justify. They acknowledge its apparently attractive valuation but believe competition undermines the investment case.
Key Arguments
- One host says he reviewed every piece of available data he could obtain and found no evidence supporting a great quarter.
- The hosts argue that competing apparel brands are taking business from Lululemon.
- They criticize Burry for relying on a thesis they believe lacks supporting evidence.
Risks acknowledged
- One host describes Lululemon's price as attractive and cites an approximate price-to-earnings multiple of 11.
- One host had investigated whether an earnings beat could support a sharp rally, but presents this as a hypothetical he could not substantiate.
NBISNebius GroupThe hosts criticize Burry's short position in Nebius in the context of their strong enthusiasm for AI investing. They argue that many investors underestimate AI's significance, but provide no Nebius-specific operating analysis or explicit prediction for its shares.
Key Arguments
- The hosts characterize being short Nebius and long Lululemon as a terrible portfolio.
- They reject the suggestion that the current AI opportunity closely resembles the dot-com bubble.
- They describe investor reluctance to recognize AI's significance as a major investment opportunity.
Risks acknowledged
- One host speculates that Burry may be seeking reversion trades based on perceived parallels with the dot-com bubble.
NKENikeOne host expresses skepticism about buying Nike at the present time and questions reported purchases by prominent executives. He uses Nike as an example of investors following recognizable names without doing sufficient independent research.
Key Arguments
- The host repeatedly says it is not time to buy Nike.
- He questions the reasoning behind Tim Cook's reported Nike purchases.
- He argues that investors should investigate underlying evidence rather than imitate prominent buyers.
Hedges & Caveats
- One host acknowledges respecting Burry for publishing his opinions ahead of time.
- The hosts acknowledge that Lululemon's valuation appeared attractive.
- The proposed explanation that Burry is pursuing reversion trades is speculative.
- The broad enthusiasm for AI includes no specific public asset price target or investment deadline.