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๐Ÿšจ THE BIG SHORT STRIKES AGAIN MICHAEL BURRY JUST ISSUED A MASSIVE WARNING ON BIG TECH AND ALMOST NOBODY IS TALKING ABOUT THE ACCOUNTING TRICK HIDING IN PLAIN SIGHT HERE IS THE INTELLIGENCE BREAKDOWN ๐Ÿ•ต๏ธโ€โ™‚๏ธ THE PLAYERS BURRY IS TARGETING THE BALANCE SHEETS OF MICROSOFT ORACLE META AND GOOGLE...

155,015 views โ€ข 6 months ago โ€ขvia X (Twitter)

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David Friedberg: Michael Burryโ€™s Datacenter Math is Wrong โ€œI actually think Michael Burberry's got this wrong.โ€ โ€œWhat Michael Burry is saying is that all of these hyperscalers have extended their depreciation schedule or the useful life of their data centers by roughly 2x, which cuts the operating costs in half when they report it in earnings. And so it's making their earnings inflate.โ€ โ€œSo he's claiming they're cooking the books. Google first made this change in Q1 of 2021, where they said the servers are now going from 3 to 4 years. Separately in 2021, Google took networking equipment from 3 to 5 years. And then in 2023, they took it from 5 to 6 years.โ€ โ€œAnd so this is a result of this effort where they went in and did an analysis. So what happened?โ€ โ€œWhat happened in the data centers is that the data centers transitioned from being primarily data storage and data transfer systems, where you would use hard drives and RAM and memory to store data and then transmit it back out, to being data processing centers because of the AI boom.โ€ โ€œSo as AI became more important in the data center, more of the dollars that are going into data centers were allocated towards chips from data storage, which initially was hard drives.โ€ โ€œAnd then suddenly, when you put these processors in to process the data to do AI, the majority of the spend and the majority of the energy is going towards the processors.โ€ โ€œI made some calls and I checked around with some other friends, and everyone says the same thing: that these 7-8 year old TPUs and GPUs that are sitting in the data centers are still being used and they're being used at 100% utilization.โ€ โ€œSo that actually justifies and validates the depreciation schedule being much longer versus shorter.โ€

The All-In Podcast

304,297 views โ€ข 8 months ago

๐Ÿšจ WARNING: SPACEX IPO IS A REAL BIG STORM FOR MARKETS!! Everyone thinks $SPCX IPO will be free money. But people thought the same about Meta in 2012. After Meta went public, the stock dumped more than 70% in the first 100 days. Retail bought the hype. Then insiders and early investors got liquidity. Now the same setup is coming again. SpaceX is expected to go public on June 12 at a $1.75 TRILLION to $2 TRILLION valuation. That would instantly make it one of the biggest companies in the US market. But hereโ€™s the problem. This is not just an IPO. This is a massive liquidity event. SpaceX $SPCX is now expected to IPO at $135 per share, with 555,555,555 shares available. That means almost $75 BILLION in shares could hit the market. Read that again. $75 BILLION of liquidity could be absorbed on day one. And everyone still thinks this is bullish. Insiders reportedly own around 95% of SpaceX shares. The public float is only around 5%. That means insiders are sitting on more than $1.6 TRILLION of paper wealth. And after the IPO, that paper wealth starts becoming real exit liquidity. Michael Burry already warned about this. He said SpaceX, OpenAI and Anthropic could raise more money than the 300 biggest IPOs in 2000. And he is not just talking. He is already betting against the AI bubble with a massive short position in $PLTR and $NVDA. So now connect the dots. Meta IPO dumped after the hype. AI stocks are already crowded. SpaceX IPO could pull $75 BILLION of liquidity from the market. Stocks. Crypto. High beta tech. Everything retail is already holding. Most people will see the Elon hype. I see the liquidity drain. This could become one of the biggest insider cashout events in modern market history. I have studied macro for 10 years and called almost every major market top including the October BTC ATH. Follow and turn notifications on. I will post the warning before it hits the headlines.

DANNY

973,924 views โ€ข 2 months ago

Friedberg: Michael Burryโ€™s โ€œCooked Booksโ€ Claim is Totally Wrong david friedberg: โ€œBurry's implication that they are cooking the books or hiding accounting is completely false because all of the accounting is apparent in the cashflow statement and in the balance sheet.โ€ โ€œRemember, companies have three financial statements, an income statement, a balance sheet, and a cashflow statement.โ€ โ€œThe cashflow statement reconciles the difference between the income statement and the balance sheet, and it shows you all the cash that's going in and out of the company.โ€ โ€œAnd many analysts and many investors that are intelligent and do their homework, will look at the cash flow statement and they will see the CapEx, they will see all the investments going out, and they will calculate a number, typically called free cash flow, that will allow them to estimate the true cash generation of the business in a particular period and make an assessment of, should they be valued on free cash flow or should they be valued on the GAAP standard of EBITDA?โ€ โ€œAnd the investor has the choice on how they want to value the company.โ€ โ€œAnd Burry is incorrect in thinking that they're hiding anything because it's all there.โ€ โ€œThey're following GAAP standards. And then investors make a market and they all decide, what do I want to value this company on? Cash flow? EBITDA?โ€ โ€œLet them choose, and then the market sets the price.โ€ Chamath Palihapitiya: โ€œI think we've given this guy way too much airtime. He's not very good at what he does.โ€ Recorded in the brand new poker studio at The Venetian Las Vegas. Thanks The Venetian Resort Las Vegas!

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