Xin Lang Cai Jing·2025-11-11 06:57Core Insights - Michael Burry, a legendary hedge fund manager and the inspiration for the protagonist in "The Big Short," has raised concerns about major tech companies manipulating asset depreciation to inflate profits, labeling it as a common fraud [1] - Burry estimates that companies like Meta and Oracle are extending their depreciation periods from the typical 2-3 years to 6 years, leading to an underestimation of depreciation by approximately $176 billion between 2026 and 2028 [1] - He predicts that by 2028, Oracle's earnings could be overstated by 26.9% and Meta's by 20.8%, indicating a significant potential misrepresentation of financial health [1] Company Analysis - Major tech firms, including Meta and Oracle, are reportedly increasing capital expenditures significantly, particularly in acquiring NVIDIA chips and servers to enhance computing power [1] - A previous report by Bank of America analyst Justin Post indicated that Alphabet, Meta, and Amazon are expected to see substantial growth in capital expenditures in 2024 and 2025, which will lead to accelerated depreciation expenses post-2026 [2] - The market consensus suggests that by 2027, the depreciation expenses for these three companies could be underestimated by nearly $16.4 billion, implying that their actual profitability may be much lower than currently perceived [2]