Brew Markets Pizza Hut For Sale & Betting Against AI: Big Short or “Bat S**t”?
6 snips
Nov 4, 2025 A hedge fund legend questions the value of AI stocks like NVIDIA and Palantir, sparking debates about potential bubbles. Yum! Brands considers selling Pizza Hut amidst mixed performance results. Hertz makes a notable comeback, while Fiserv's shocking stock drop raises eyebrows. The Big Bath Theory is explored, highlighting corporate strategies for resetting expectations. Meanwhile, Pfizer and Novo Nordisk battle it out over drug bids, adding drama to the pharmaceutical landscape.
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Contrarian Bet On AI Leaders
- Michael Burry bought over $1 billion in put options betting NVIDIA and Palantir will fall despite booming AI narratives.
- Palantir's PEG ratio exceeds 250, implying earnings expectations are already sky-high and may be unsustainable.
CEO Fires Back At Short Sellers
- Palantir CEO Alex Karp called shorting chips and ontology "batshit crazy" on CNBC in response to Burry's bets.
- Palantir still beat revenue expectations with 63% year-over-year growth, yet its stock fell as valuation concerns dominated.
Earnings Reveal AI Expectation Risk
- Earnings season is highlighting increasing caution around AI-related capex and expectations.
- Market reactions show high growth beats can still trigger sell-offs if future expectations aren't raised further.
