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Michael Burry challenges the AI trade with big short bets on Nvidia and Palantir

1. Michael Burry bought put options for 5 million Palantir shares, signaling bearish outlook. 2. His positions account for 80% of Scion's portfolio, indicating a significant bet. 3. Palantir's P/E ratio exceeds 300, raising concerns about overvaluation. 4. Despite beating forecasts, Palantir shares fell 4% in pre-market trading. 5. Burry's skepticism suggests potential market correction for popular AI stocks.

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FAQ

Why Very Bearish?

Burry's heavy put option bet on PLTR indicates expectations for sharp decline, mirroring historic shorting strategies during market peaks.

How important is it?

Burry's significant short position in PLTR along with his commentary on market dynamics signals heightened risk for investors.

Why Long Term?

Burry's strategy suggests a longer outlook, similar to his timing in 2007-08 before market downturn.

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