This article presents an overview of Michael Burry Is Selling These 7 Stocks in 2024. For a detailed overview of such stocks read our article, Michael Burry Is Selling These Stocks in 2024.
7. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Investors: 45
MGM Resorts International (NYSE:MGM) ranks 7th in our list of the stocks Michael Burry is selling in 2024. The Big Short sold the 100,000 MGM Resorts International (NYSE:MGM) shares he’d bought in the fourth quarter of 2023. Of the 933 hedge funds tracked by Insider Monkey, 45 hedge funds reported owning stakes in MGM Resorts International (NYSE:MGM).
Earlier this month MGM Resorts International (NYSE:MGM) posted Q1 results. Adjusted EPS in the quarter came in at $0.74, surpassing estimates by $0.16. Revenue jumped 13.7% year over year to $4.4 billion, beating estimates by $170 million.
Longleaf Partners Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its fourth quarter 2023 investor letter:
“MGM Resorts International (NYSE:MGM) & Hyatt – Hospitality companies MGM Resorts and Hyatt were both strong performers in the fourth quarter and for the year, outperforming expectations that the post-COVID travel rebound would ease in 2023. Casino and online gaming company MGM saw double-digit revenue growth and strong 2023 bookings in Las Vegas in the first half, which moderated in the second half but remained solid. A cybersecurity attack negatively impacted 3Q results, but MGM does not expect the $100 million hit to have a material effect on its financial condition and operational results for the year. MGM bought back discounted shares at a 15% annualized rate and authorized another $2 billion buyback in 4Q, which represents another 15% of the company.”
Michael Burry of Scion Asset Management
6. Toast Inc (NYSE:TOST)
Number of Hedge Fund Investors: 52
Cloud-based restaurant software company Toast Inc (NYSE:TOST) is one of the stocks Michael Burry sold in Q1’2024 after taking profits. He’d built a stake in Toast Inc (NYSE:TOST) in the fourth quarter 2024, amassing 200,000 shares. Over the past one year the stock has gained about 50%.
5. Warner Bros Discovery Inc (NASDAQ:WBD)
Number of Hedge Fund Investors: 56
Michael Burry dumped all 375,000 shares of Warner Bros Discovery Inc (NASDAQ:WBD) from his portfolio in the first quarter of 2024. The stock has lost about 33% in value over the past one year. However, KeyBanc’s Brandon Nispel recently upgraded the stock to Overweight from Sector Weight, with an $11 price target.
The analyst said the stock is “washed out” and now looks positioned to rally in the short term.
Longleaf Partners Fund stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its fourth quarter 2023 investor letter:
“The rules have improved how we analyze existing holdings and influenced the price at which we will buy a new holding and/or trim or add to an existing one. This has resulted in a higher level of resizing positions in the portfolio and exiting some long-term holdings this year. A good example in the portfolio today is Warner Bros. Discovery, Inc. (NASDAQ:WBD), a company that we bought too early but that remains a holding in the portfolio. Our average price for the initial WBD investment in 2021 was $26.48, or a P/V ratio in the mid-60s%. However, P/EV on the initial report was 79%. Under the new rules, we would not pay that price for the company today. We most likely would have waited for a mid-60s% P/EV, which would have equated to a $mid-teens entry price. In this case, we would have missed a too-large initial downturn in the stock price. The overweight rule dictated that we trimmed the position after the price ran up in the first half of 2023, which benefitted overall performance as the stock price subsequently fell again. However, even with the new rule lens, we remain confident in our case for the business and management’s ability to deliver going forward.”