Caterpillar Slides After Michael Burry Shorts Stock Following 150% AI-Fueled Rally
Updated
Updated · Bloomberg · Jul 2
Caterpillar Slides After Michael Burry Shorts Stock Following 150% AI-Fueled Rally
3 articles · Updated · Bloomberg · Jul 2
Summary
Caterpillar shares fell from a record high on Wednesday after Michael Burry disclosed a short position in the industrial heavyweight.
Burry’s bet targets a rally of more than 150% over the past 12 months, driven by investor enthusiasm for Caterpillar’s power equipment links to the AI buildout.
The investor, known for profiting from bets against the US housing market before the 2008 crisis, signaled he believes that AI-driven run is ending.
His call also extends beyond Caterpillar, with Burry saying he is turning bearish on several other stocks lifted by the AI trade.