Yahoo Finance·2025-11-12 18:32Group 1: Michael Burry's Investment Strategy - Michael Burry is betting against AI stocks, specifically Nvidia (NVDA) and Palantir (PLTR), by purchasing put options in Q3 2025 [1] - Burry has suggested he closed his short position on Palantir, indicating a strategic shift in his investment approach [1] Group 2: Allegations Against Hyperscalers - Burry accuses hyperscalers of accounting fraud by understating depreciation, which he claims artificially boosts earnings [2] - He estimates that hyperscalers will understate depreciation by $176 billion from 2026 to 2028, with Oracle (ORCL) and Meta Platforms (META) overstating earnings by 26.9% and 20.8% respectively by 2028 [2] - Burry highlights that Alphabet (GOOG) has doubled the useful life of its network/compute assets to six years since 2020, allowing for a longer depreciation period and boosting near-term earnings [3] Group 3: Financial Implications for Hyperscalers - Hyperscalers are facing significant depreciation costs due to investments in AI infrastructure, which will impact their income statements [4] - The effect of higher depreciation is already evident in earnings, as profits are not growing as significantly relative to revenue compared to the previous two years [4] - Burry plans to release more details on his allegations on November 25, which may provoke responses from the companies involved [4]