Stocks on Wall Street plunged on Friday as Broadcom’s latest results added to concerns about an AI-fueled bubble, dampening optimism stoked by the Federal Reserve’s less-hawkish-than-expected signals on 2026 rate cuts.In recent trading, the Dow Jones Industrial Average tumbled more than 200 points, or 0.5%, to 48,462. The S&P 500 dropped 1.1%, and the Nasdaq lost 420 points, or 1.8%. The blue-chip index had risen nearly 200 points to 48,886, a new all-time intraday record.Despite less-hawkish signals on 202 ...

Core Viewpoint - Michael Burry criticizes Tesla's valuation, claiming it has become unrealistic and disconnected from the company's fundamentals, particularly in light of its recent performance and competition in the electric vehicle market [1][4][7] Group 1: Valuation Concerns - Burry argues that Tesla's stock is trading over 15 times forward sales estimates, which is 1,515% higher than the sector average [4] - The stock is also trading more than 335 times forward GAAP earnings, representing a staggering 1,620% premium over the sector average [5] Group 2: Performance and Growth Issues - Tesla has experienced multiple quarters of declining sales and weakening deliveries, contrasting sharply with the strong numbers that previously supported its high valuation [7] - The company is attempting to pivot its growth narrative by promoting new technologies like Robotaxis and humanoid robots, but Burry views this as a desperate attempt to justify its inflated price [2][3] Group 3: Broader Market Context - Burry links Tesla's situation to a broader "AI-fueled bubble" affecting Big Tech, suggesting that the valuation issues are not isolated to Tesla but part of a larger trend [3][6] - His recent bearish positions against AI companies like Nvidia and Palantir further emphasize his concerns about inflated valuations across the tech sector [4][6]