The Bad PlaceUS Top News and Analysis | Michael Burry adds to beaten-down stocks while warning of echoes of dot-com bubble
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Michael Burry, famed for predicting the housing crash, disclosed new purchases in several undervalued companies while warning that the current AI‑driven market frenzy mirrors the late‑stage dot‑com bubble of 1999‑2000. He increased his stake in Latin‑American e‑commerce leader MercadoLibre, added to positions in Adobe, PayPal, Zoetis and built a sizable holding in Lululemon, describing these as “mass whale fall” opportunities away from the AI spectacle. Burry argues that capital is overly concentrated in AI‑related themes—evidenced by 87 % of venture‑capital funding and a large share of both investment‑grade and high‑yield bond issuance—creating an asset bubble that could burst like the technology bubble, with debt that was once “clean” potentially turning junk. He urges investors to curb exposure to parabolic stocks and consider the overlooked, long‑term winners in older industries and international markets.