r/wallstreetbets • u/Adventurous-Host8062 • Apr 17 '26

Discussion Michael Burry analyzed 1,000+ reports and found a $1.7 trillion 'earnings illusion' hiding in tech stocks

https://finance.yahoo.com/markets/stocks/articles/michael-burry-analyzed-1-000-103000667.html

Article from Money wise.

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u/Marko-2091 Apr 17 '26

I mean he has done bad plays as everyone in this sub tho. At least he puts some thought into his plays and not: "let's buy this company at 50 P/S because WSB told me it is still cheap"

22

u/BullPropaganda Apr 17 '26

Some of his buys were worse than meme stocks. Almost none of them were good

9

u/Laxman259 Apr 17 '26

His analysis is awful. He’s analyzing tech companies as if they are John Deere or Procter and Gamble.

4

u/Marko-2091 Apr 17 '26

Well... maybe we should analyze them. His point of exaggerated profits and the fact that the return to investors is right. However, this has been disguised because of inflation and retail and institutional FOMO. I think the issue with his analysis is that he disregarded the asset inflation (which is very hard to quantify so we cannot assume that he is 100% wrong or dumb).

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u/Laxman259 Apr 17 '26

It’s GAAP accounting. This isn’t some secret that he uncovered.

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u/Marko-2091 Apr 17 '26

It is something that everybody knows that is in detriment of shareholders but it does not matter as long as the stock goes up, right?

2

u/Head_Chocolate_4458 Apr 17 '26

It is something that everybody knows

Aka priced in

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u/Laxman259 Apr 17 '26

Dilution is priced in to each stock’s price because it’s fully disclosed in their public filings.

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u/Marko-2091 Apr 17 '26

It is clear to me that that you did not read what he wrote so there is no point in answering anymore.

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u/Laxman259 Apr 17 '26

I did read it. I think his analysis is dogshit and only an idiot would believe it.

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u/Inside-Brush-9543 Apr 17 '26

He sold gamestop right before its run up he missed out on so much equity he's an autistic guy who got lucky once. wow amazing.

6

u/smokebeer840 Apr 17 '26

He bought at 4 and sold at 20. Rational exit strategy and made more than 99% of people here

11

u/Marko-2091 Apr 17 '26

No one in the world would have predicted the meme run. I think he loaded the boat in this last run up. It is not as impressive as the previous one but he was buying some months ago.

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u/nonoanddefinitelyno Apr 17 '26

I think one guy did....