Benzinga·2025-07-03 12:30Group 1: Michael Burry's Investment Moves - Michael Burry's hedge fund, Scion Asset Management, doubled its stake in Estee Lauder, acquiring an additional 100,000 shares, bringing total holdings to 200,000 shares [2] - Burry closed all long positions in Chinese tech companies and opened short positions in stocks like Alibaba and JD.com, indicating concerns about China's economic growth and U.S.-China tensions [3] Group 2: Estee Lauder's Challenges in China - Estee Lauder reported weaker-than-expected sales in China due to sluggish consumer demand, increased competition from local brands, and a shift towards domestic products [4] - The company is facing trade tensions and high tariffs, prompting efforts to streamline operations and reduce exposure to the Chinese market [4] Group 3: Strategic Adjustments and Market Outlook - Younger Chinese consumers are increasingly favoring homegrown brands, leading Estee Lauder to accelerate product launches and invest in new markets like India [5] - Deutsche Bank upgraded Estee Lauder shares to a Buy, raising the price target from $71 to $95, citing the company's efforts to diversify beyond China [5] - Estee Lauder's diversification, cost-cutting, and focus on new markets may position the company to weather downturns and benefit from a potential recovery in Chinese consumer demand [6] Group 4: Market Performance - Estee Lauder shares have gained over 25% in the past month, reflecting positive market sentiment [7]