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.”
4. CVS Health Corp (NYSE:CVS)
Number of Hedge Fund Investors: 67
Michael Burry had bought 100,000 shares of CVS Health Corp (NYSE:CVS) in the second quarter of 2023, but sold all of them in the following quarter. He then bought 65,000 shares of CVS Health Corp (NYSE:CVS) in the last quarter of 2023, only to sell them in the first quarter this year. Over the past one year CVS Health Corp (NYSE:CVS) shares are down about 16%.
In its fourth quarter 2023 investor letter, Vltava Fund stated the following regarding CVS Health Corporation (NYSE:CVS):
“Not every transaction creates value. Some transactions destroy company value. An example of such transaction is CVS Health Corporation (NYSE:CVS)’s acquisition of Oak Street Health in early 2023. This acquisition cost CVS $10.6 billion, and, based on metrics cited by the company itself, it seems to us that it was a waste of money for the most part. Unfortunately, CVS has its own history of overpriced acquisitions. The last one prior to that was in 2018, when CVS bought health insurer Aetna for $69 billion. We had assumed that CVS management, which has since changed, would recognise that mistake and learn from it. We were wrong. The acquisition of Oak Street Health is both disappointing and a warning to us. We now have a company in our portfolio whose capital allocation we consider to be poor and that should not be there. Unfortunately, the situation is complicated by the fact that the CVS stock is now very cheap and therefore we are reluctant to dispose of it just yet. We probably will do so, however, when the opportunity arises.”
3. Oracle Corp (NYSE:ORCL)
Number of Hedge Fund Investors: 100
Oracle Corp (NYSE:ORCL) was a new arrival on Michael Burry’s portfolio in the fourth quarter of 2023, as the investor bought 50,000 shares of Oracle Corp (NYSE:ORCL). However, Burry dumped this entire stake in the database technology and Cloud company in the first quarter of 2024. Over the past one year Oracle Corp (NYSE:ORCL) shares are up about 20%.
Madison Sustainable Equity Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its fourth quarter 2023 investor letter:
“Oracle Corporation (NYSE:ORCL) reported a disappointing second quarter due to supply constraints. Cloud revenue was below expectations as Oracle made planning decisions to accommodate some large-scale Oracle Cloud Infrastructure (OCI) clients that take longer to bring online. We continue to believe that Oracle has a unique position in Generative AI workloads and continue to like its position and strategy.”
2. Alphabet Inc Class A (NASDAQ:GOOGL)
Number of Hedge Fund Investors: 214
Selling Alphabet is another surprising move of Burry during the March quarter this year, as the Big Short investor dumped 35,000 shares of Alphabet Inc Class A (NASDAQ:GOOGL) he’d owned heading into 2024.
Alphabet Inc Class A (NASDAQ:GOOGL) shares have gained about 27% so far this year. The stock is trending following the I/O event where Alphabet Inc Class A (NASDAQ:GOOGL) revealed several AI features.
Third Point Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its first quarter 2024 investor letter:
“During Q1, the funds made a substantial investment in Alphabet Inc. (NASDAQ:GOOG) as the market worried about the impact of LLMs, personal assistants, and answer engines such as Perplexity AI on Google Search. We have owned Alphabet in the past and have long admired its exceptional business model and its proven ability to maintain a leading position across an array of preeminent products such as Search, Gmail, Android, GCP, and YouTube.
The concern that in an AI world, changes in the way consumers will eventually interact with their personal devices and with the internet can result in risks to Alphabet’s core business Search is not entirely unfounded. Alphabet, however, has both a substantial distribution and technology advantage over competitors and is positioned to use its AI capabilities to unify, enhance, and better monetize the entire suite of its products…” (Click here to read the full text)
1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 293
Michael Burry dumped his entire stake in Amazon.com Inc (NASDAQ:AMZN) during the first quarter of 2024, selling 30,000 shares in Amazon.com Inc (NASDAQ:AMZN) he’d owned in the previous quarter. This surprised many as Amazon.com Inc (NASDAQ:AMZN) is apparently just getting started reaping rewards of the AI revolution, thanks to Amazon Web Services that offers software and Cloud features to develop, deploy and maintain AI apps.
Vulcan Value Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its first quarter 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a dominant, world class company with powerful secular tailwinds in place including its ecommerce penetration, digital advertising growth, and the cloud transition. Amazon reported strong results during the quarter. Losses in the Core Retail business significantly narrowed. Amazon reduced its cost to serve on a per unit basis for the first time since 2018 as the company’s recent regionalization efforts continue to bear fruit.”
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