The Joseph Carlson Show Michael Burry Warns About The Stock Market Again
Nov 12, 2025
Michael Burry makes headlines with his significant short positions against NVIDIA and Palantir, raising eyebrows in the investment community. Burry's allegations of accounting fraud prompt a debate about the misleading nature of depreciation practices among tech firms. Meanwhile, Mark Mahaney shares his top stock picks, highlighting the growth potential of Amazon, Expedia, and Netflix. In a surprising twist, Waymo rolls out expanded robotaxi services ready for harsh weather conditions. Plus, a founder's recent admission of fraud adds a dose of drama to this week.
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Burry's Accounting Fraud Thesis
- Michael Burry alleges hyperscalers understate depreciation to inflate earnings and valuations.
- He estimates $176 billion of understated depreciation between 2026–2028 boosting current EPS and market concentration.
Depreciation Extensions Explained
- Big tech moved to longer depreciation schedules for GPUs and servers, e.g., three years → six years at Google.
- Longer schedules reduce annual expense and can materially lift reported net income versus cash flow.
Accrual vs Cash Impact
- Depreciation moves cash expense into multi-year accruals, inflating current net income relative to cash flow.
- Example: $600k equipment depreciated over three vs six years halves annual expense and raises today's reported profits.