⚡️⚡️⚡️⚡️⚡️⚡️ Michael Burry claims massive fraud in markets 🚩
Here are the details
Michael Burry (yes, the one from the movie) claims that giant cloud companies – led by Meta, Google, Microsoft, Oracle, and Amazon – are playing with the numbers. 😈
How? 💡
According to him, they do this by extending the lifespan of tangible assets (servers, computing and network equipment), a move that reduces depreciation and inflates paper profits... 💭
What does this mean in practice? ℹ️
When a company says its servers will last 6 years instead of 4, it effectively lowers the annual depreciation expense – and thus presents a higher operating profit – even if there is no real improvement in performance. ⚠️
According to Burry's estimate, between 2026 and 2028 these companies will inflate profits by about $176 billion from this trick alone. 🧮
For example: Oracle ($ORCL) may show inflated profits by about 26.9% ❌ Meta ($META) by about 20.8%. ❌
A table attached to Burry's post shows the dramatic change in asset lifespans: 📊
📱 Meta: from 3 years (2020) to 5.5 years (2025). 📈 📱 Google: from 3 to 6. 💥 📱 Microsoft: from 3 to 6. 🔥 📱 Amazon: from 4 to 6. 🪧 📱 Oracle: from 5 to 6. 📈
What is the meaning of this? ❓
According to Michael Burry – if the forecasts are correct, investors are getting too rosy a picture of the giants' profitability – and it is possible that this is one of the significant 'accounting bubbles' of the coming years? 🩸
Burry ends the post with a big hint that he has more details, which he will reveal on November 25... 🤫
Are we in another episode of 'The Big Short' – and this time Michael Burry is again in the lead role? 🎬
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