Legendary Investor Michael Burry Is Betting Against Apple (AAPL) Stock

  • Dr. Michael Burry famously earned hundreds of millions in 2008 after shorting the housing market
  • Burry recently filed a 13F disclosure, reflecting a substantial short position on Apple (NASDAQ:AAPL)
  • AAPL stock has dropped more than 20% year-to-date (YTD) as part of the bearish wave hitting the market
An Apple (AAPL) MacBook Air laptop sitting under bright purple lights.
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Dr. Michael Burry, best known for being one of the first to bet against the subprime housing market in 2008, is now shorting Apple (NASDAQ:AAPL) stock. The former head of Scion Capital and current head of Scion Asset Management, Burry filed a 13F disclosure this week that reflects a short position on the tech giant.

Investors have long been interested in Burry — and perhaps rightfully so. The investor earned hundreds of million for himself and his hedge fund on a controversial short investment against housing bonds. His story became a worldwide phenomenon after being featured in Michael Lewis’ book, The Big Short, which later became an Oscar-winning film.

Burry’s recent 13F filings for the first quarter of 2022 offered insight into the mind of the legendary investor. Burry is long on a number of popular companies, including Bristol-Myers Squibb (NYSE:BMY), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Meta Platforms (NASDAQ:FB). However, one of his largest holdings is a short position on Apple — upwards of $35 million. This is a far cry from Burry’s massive housing short, but it still represents a bold prediction.

Burry Believes AAPL Stock Is Overvalued

According to one investor, Burry’s short position likely reflects the idea that Apple could be in a bubble. Seeking Alpha contributor Logan Kane commented on AAPL stock’s skyrocketing share price.

“As good as Apple’s management team is, there’s no denying that the stock has risen faster than earnings have. In fact, as recently as December 2018, Apple stock was a fantastic deal. But as the Nasdaq […] has soared over the past couple of years, Apple stock has become less and less fundamentally attractive.”

AAPL stock is currently far from its peak, even recently losing its status as the most valuable company in the world. The company is trading at $135 per share currently, down more than 20% YTD. This is far from its 52-week high of $182.94. Clearly, Apple has been a big part of the tech sector selloff taking root in the market this year.

Michael Burry tweeted that stocks are in the “Greatest Speculative Bubble of All Time” amid last year’s boom. As AAPL stock and other major tech plays continue to tread in the red week after week, it remains to be seen if his latest bet will hold up.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/legendary-investor-michael-burry-is-betting-against-apple-aapl-stock/.

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