Big Short investor proved right in $1bn bet that stock bubble bursting… in dire warning for Wall Street and 401(k)s
The man who spotted the 2008 crash before anyone else is worryingly starting to look right again.
Nearly three months after Michael Burry placed a $1 billion bet against Wall Street’s hottest AI stocks, they are lower by as much as 33 percent – a huge plunge when the broader market is slightly up.
Palantir and Nvidia – two of the biggest winners of the artificial-intelligence boom – have shed a combined $1trillion in market value since Burry made his move in early November.
Market watchers say the slide in AI stocks could be an early signal of a broader correction, raising fresh fears that losses could soon spread beyond Silicon Valley and into millions of Americans’ 401(k)s tied to the S&P 500 and Nasdaq.
And the sharp declines have turned a trade that was mocked by Palantir boss Alex Karp as a ‘bat**** crazy’ into one that appears to be paying off.
The bearish bets by Burry – by the investor whose story was later immortalized in The Big Short – were revealed in filings on the morning of November 4, a date that has proved to be a high water mark on the value of the two companies.
The reaction was swift. Within three trading days, Palantir shares were down 15 percent and Nvidia had fallen 12 percent. But things have gotten much worse, Daily Mail analysis of Google Finance data shows.
Palantir has been hit the hardest. From its November 3 closing price of $207, shares of the data-analytics firm have fallen by $69 – a drop of more than 33 percent as of the end of trading today (February 4).
That slide has wiped roughly $161billion off the company’s market value, shrinking it from $494billion in early November to $333billion today.
Nvidia’s decline has been less steep in percentage terms, but far larger in dollar terms. Shares of the chipmaker have fallen 15 percent from their November 3 close of $206.88, and ended today at $175.52.
While Nvidia’s market capitalization remains enormous at $4.25trillion, it peaked at above $5trillion – the first and only time a company hit that level – right before Burry’s bet was revealed.
Filing by Burry showed roughly $900 million in put options against Palantir and about $187 million against Nvidia – financial instruments that rise in value when a stock falls.
In the 12 months leading up to November, Palantir shares had surged more than 250 percent, while Nvidia had risen roughly 180 percent as investors piled into anything tied to artificial intelligence.
Those gains left both companies trading at valuations that assumed years of uninterrupted growth – the kind of setup that has historically left little room for disappointment.
Palantir’s latest earnings only underscored the fear around AI stocks. The company posted blockbuster results earlier this week that initially thrilled investors, sending the stock jumping more than 7 percent on Tuesday.
But the celebration didn’t last. By the close today, Palantir shares had plunged 13 percent, wiping out the gains and dragging the stock back below pre-earnings levels.
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Chip Roy: ‘Voter ID Equals Save America’
Tuesday on FNC’s “The Ingraham Angle,” Rep. Chip Roy (R-TX) made a plea for voter identification to shore up election integrity and prevent voter fraud.
According to the Texas Republican and candidate for Texas Attorney General, voter ID would “save America.”
“Now, their argument here, the Democrats’ argument, if there is really an argument, is that there really is no voter fraud,” host Laura Ingraham said. “It’s extremely rare. So, what you all are doing by requiring proof of citizenship to vote, and getting people off the rolls, cleaning up the rolls, what you guys would require is just a way to make it more difficult to vote. And you say?”
Roy replied, “Well, Laura, great to be on the show. And look, they’re only threat to our election. Like, all this, you know, people that are in a tizzy about President Trump. The only threat to elections are the people who are here, who will steal our elections by voting without voter ID.”
“Like, all of the fraud that we’re seeing in Minneapolis, right?” he continued. “All of that fraud. That’s just the tip of the iceberg of the kinds of things we’re seeing across the country. They can do that there with child care facilities, then what do you think they’re doing with ballots? What do you think they’re doing in the voting process? We know they are engaging in this on purpose. There’s a reason Democrats are all concerned about this. Why would they be concerned about ICE being near voting locations? Because they don’t want enforcement of the law there.”
“So, enter the SAVE Act, which I introduced two years ago,” Roy added. “Mike Lee introduced this in the Senate, which as you know, ensures that you have voter identification, i.e., you have to prove your citizenship to register, and we clean up the rolls. Because right now people don’t understand. Arizona has two sets of systems for their voting because they’re not allowed under federal law to require proof of citizenship and voter ID for federal elections. They’re not allowed to do it. So, they do it for their state elections, but not federal. I’m running for attorney general. I want to be able to enforce the law in Texas. Current federal law doesn’t allow us to do it. The SAVE Act would fix that. Now we’ve added true federal voter ID to that and introduced the Save America Act. So, we have Save citizenship, voter ID equals save America. We think we ought to move it through the House and to the Senate.”
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UH-OH: Whoopi Goldberg and Other Members of ‘The View’ Are Mentioned in the Epstein Files
The ladies of The View have been harping on the Epstein Files for months. Like all other members of their party, they thought that this was an effective way to attack Trump.
But would it surprise you to find out that these same idiots are actually mentioned in the Epstein Files themselves?
Kudos to Nicholas Fondacaro of NewsBusters for digging up this incredibly funny information.
As Fondacaro reports at NewsBusters, someone named Whoopi Goldberg even reached out to Epstein for help with a flight:
Whoopi Goldberg Requested Epstein Jet Fly Her to Monaco Charity Event
A NewsBusters investigation of the Epstein Files discovered that cast members of ABC’s The View were mentioned nearly four dozen times. Despite the files being a major topic of discussion on the show, as they tried to tie President Trump to criminal activity, none of the cast members addressed their names appearing in the same files. One cast member was seemingly interested in borrowing one of Epstein’s infamous private jets.
A search of the cast members’ names on the Department of Justice website returned nearly four dozen (46) references.
Moderator Whoopi Goldberg led the way with 21 references, co-host Alyssa Farah Griffin clocked in with 20, Joy Behar had three, and Ana Navarro had two. Fortunately for co-hosts Sunny Hostin and Sara Haines, they weren’t mentioned at all (as of the release of the latest batch of files).
The search for references did take into account Goldberg going by just her first name, Farah Griffin’s maiden name, and Hostin’s maiden name (Cummings) and real first name (Asunción; with and without the accent mark)…
The e-mail was requesting possible use of one of Epstein’s private jets to help Goldberg attend a White Feather Foundation charity event in Monaco.
“Whoopi Goldberg needs a plane to get to Monaco. John Lennon’s Charity is paying for it. They don’t want to charter so they are looking for private owners,” the e-mail began.
How funny is this?
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Whoopi Goldberg Requested Epstein Jet Fly Her to Monaco Charity Event
A NewsBusters investigation of the Epstein Files discovered that cast members of ABC’s The View were mentioned nearly four dozen times. Despite the files being a major topic of discussion on the show, as they tried to tie President Trump to criminal activity, none of the cast members addressed their names appearing in the same files. One cast member was seemingly interested in borrowing one of Epstein’s infamous private jets.
A search of the cast members’ names on the Department of Justice website returned nearly four dozen (46) references.
Moderator Whoopi Goldberg led the way with 21 references, co-host Alyssa Farah Griffin clocked in with 20, Joy Behar had three, and Ana Navarro had two. Fortunately for co-hosts Sunny Hostin and Sara Haines, they weren’t mentioned at all (as of the release of the latest batch of files).
The search for references did take into account Goldberg going by just her first name, Farah Griffin’s maiden name, and Hostin’s maiden name (Cummings) and real first name (Asunción; with and without the accent mark).
NewsBusters discovered e-mails from a redacted address reaching out to Epstein and a “Larry V” seemingly on behalf of Goldberg.
The e-mail was requesting possible use of one of Epstein’s private jets to help Goldberg attend a White Feather Foundation charity event in Monaco.
“Whoopi Goldberg needs a plane to get to Monaco. John Lennon’s Charity is paying for it. They don’t want to charter so they are looking for private owners,” the e-mail began.
The message would go on to explain the short-notice of the request and specifically asked for Epstein’s Gulfstream GII:
The scheduled jet fell through yesterday and they are scrambling to get Whoopi over to Monaco[.]
I am sure the jet owner could attend the fete and get fuel reimbursed (otherwise if it is to be paid for, we’d love to know costs to factor it in for John. Obviously the more money we keep, the more goes directly to the charity).”
Would you want to offer the GII?
The Gulfstream jet was the subject of controversy in 2021, since it was tied to Epstein’s crimes.
Epstein turned down the request in another e-mail with a brief “no thnaks [sic].”
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