9 Stocks Big Short’s Michael Burry Is Betting On

Key Takeaways

• Burry added FMCC, aligning with Bill Ackman's undervalued view.
• FMCC target price $20, current price near $8.5, deep discount.
• Burry bought JD.com, seeing entry point before May earnings.
• JD.com projected $519 million profit, $45.6 billion revenue.

Pulse Analysis

Michael Burry’s reputation as the original "Big Short" makes any of his moves a headline, even after Scion Management deregistered from the SEC in 2023. Investors now rely on his public statements and social‑media hints to infer holdings, treating his contrarian instincts as a barometer for overlooked opportunities. This shift has sparked a new wave of retail and institutional tracking, where analysts dissect every tweet for clues about his portfolio composition and risk appetite.

One of Burry’s most talked‑about positions is Federal Home Loan Mortgage Corp (FMCC), a mortgage‑backed securities firm trading near $8.5 after analysts cut price targets. Bill Ackman has also flagged FMCC as deeply undervalued, citing short‑term geopolitical stress from the Iran conflict as a discount driver rather than a structural flaw. With a BTIG target of $20, the stock offers a potential upside of over 130%, aligning with Burry’s pattern of buying distressed assets that he believes the market has over‑penalized. The convergence of two high‑profile investors on FMCC underscores a broader narrative: traditional mortgage finance may be poised for a rebound as credit conditions stabilize.

Across the Pacific, Burry’s purchase of JD.com signals confidence in Chinese e‑commerce despite broader skepticism about AI‑heavy tech. JD.com is projected to post $519 million net profit on $45.6 billion revenue for the quarter ending May, a modest but solid performance that could validate Burry’s entry before earnings release. By betting on JD.com while shorting Nvidia, Burry is effectively separating the speculative AI rally from the fundamentals of logistics‑driven retail. If JD.com meets or exceeds expectations, it could reinforce the case for selective exposure to Chinese growth stocks, while a miss might amplify the narrative that AI hype is inflating valuations beyond sustainable levels.