Burry shifts portfolio: Bets on Meta, Alibaba, UnitedHealth, drops Nvidia
Legendary “Big Short” investor Michael Burry, known for his prescient bets against the housing market, has once again reshuffled his portfolio, revealing fresh wagers on tech giants Meta Platforms and Alibaba Group, alongside a significant stake in healthcare behemoth UnitedHealth. This strategic overhaul in the second quarter of 2025 saw his firm, Scion Asset Management, notably exit a position against Nvidia, signaling a distinct shift in his market outlook.
Burry’s move away from Nvidia comes as the chipmaker has faced considerable headwinds in 2025, with its stock experiencing a significant decline of 20% by April. This downturn was largely attributed to increased export restrictions to China, a crucial market, and intensifying competition from emerging AI chip manufacturers like Huawei. Despite a subsequent recovery in July due to the lifting of some export restrictions, valuation concerns have persisted around Nvidia, a factor often considered by Burry in his investment decisions. His exit from Nvidia aligns with his contrarian tendency to sell high-flying assets when he perceives them to be overvalued, regardless of their dominant market position.
The pivot toward Meta Platforms and Alibaba Group suggests Burry is identifying value in major technology companies that have navigated periods of skepticism or regulatory pressure. Meta Platforms, the parent company of Facebook and Instagram, recently reported robust Q2 2025 earnings, showcasing 22% revenue growth and 38% EPS growth, driven by advancements in AI-powered advertising and increased user engagement. Despite plans for substantial AI-related capital expenditure, Meta’s valuation is considered by some analysts to be attractive, with a price-to-earnings ratio below its historical average. Burry’s bet here could be a play on the company’s ability to monetize its vast user base and AI investments, seeing past the initial market reaction to high spending.
Similarly, his reported wager on Alibaba Group comes as the Chinese e-commerce and tech giant has demonstrated resilience. After facing stringent regulatory crackdowns and U.S.-China tensions in previous years, Alibaba’s fiscal 2025 results confirmed a recovery in revenue and operating income, supported by strong performance in its e-commerce and AI-driven cloud businesses. The company recently unveiled its Qwen3-Coder AI model, contributing to renewed investor optimism. Alibaba’s forward price-to-earnings ratio remains below its historical average, indicating potential undervaluation and aligning with Burry’s characteristic pursuit of “roadkill” companies that he believes are trading below their intrinsic worth.
Perhaps the most striking new position in Scion’s portfolio is UnitedHealth Group, a significant addition that now ranks as one of Burry’s top holdings, including substantial call options and direct stock purchases. This move is particularly contrarian, as UnitedHealth has faced challenges, including rising care trends, a Department of Justice investigation related to its Medicare business, and a revised 2025 outlook that fell short of consensus estimates. However, UnitedHealth’s stock has been trading near its five-year low, and its price-to-earnings ratio is close to its 10-year low, suggesting a potential margin of safety. Burry’s bullish stance on UnitedHealth notably mirrors actions by Warren Buffett’s Berkshire Hathaway, which has also increased its stake in the healthcare giant, suggesting a shared belief in the industry’s recovery prospects and UnitedHealth’s long-term competitive advantages despite near-term headwinds.
These latest portfolio adjustments underscore Michael Burry’s consistent adherence to a deep value and contrarian investment philosophy. He meticulously analyzes financial health, seeks out assets that are undervalued or overlooked by the broader market, and emphasizes a “margin of safety” to protect against downside risk. By shedding a high-flying tech stock for seemingly out-of-favor or undergoing-transition companies, Burry continues to carve his own path, betting on fundamental value over prevailing market sentiment.