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Hey, welcome back to two stupid guys trade stocks. I'm Dylan. And I'm Vinnie. And man, oh man, this is a a lovely one for us here at two stupid guys trade stocks. Uh Michael Burry was something that we talked a lot about in the beginning of this channel and we still follow kind of what he does. But he bought a stock that we've also been a big fan of for a while, Alibaba, again.
He's owned it in the past and he just apparently bought more and he talked about it just yesterday. So, we're going to do a little quick video about that, okay? And added to Nvidia puts, also important. Also, I'm semi moved in for the people that are betting on Polymarket if I'm going to move in. Technically not moved in all the way, but progress.
Yeah. Yeah, there's fewer boxes. Fewer boxes, nice. Um but basically this this is a news article from investing.com. Uh you know, Burry once he once he went ahead and shut down his official hedge fund, he's been a little bit more vocal uh in social media and created this subscription Substack that you can subscribe to.
Forget how much money it was to sign up. I haven't done it yet, which something we may do. But it gives you like insight I guess into what he's thinking trading wise. But he's you know, famous enough that immediately his Substack stuff becomes like public. So, some news article gets written about it.
So, it was not only on investing.com, but CNBC also had article about it. Uh but basically the idea here being that he I guess he disclosed that he bought uh both JD and Alibaba, right? Two Chinese e-commerce retailers saying that they were relatively cheap. Um and then uh he also bought some GameStop, which is a company he got relatively famous for at one point in time uh buying as well from like a value investing standpoint and then had like the whole meme stock era uh kicked it off really.
And he was in that trade before it really went crazy and it also exited before the whole like you know, short squeeze went insane. But then he also added to his Nvidia puts and he he specifically gave us the strike and the expiration date that he purchased, which is pretty cool now that he's not officially reporting this stuff as a hedge he can be a lot more granular in his you know, information.
If you notice that he changed his his X from Cassandra, you know, the warning speaker of warnings that go unlistened to, to Cassandra Unchained, meaning that he's no longer bound by the constraints of of owning the hedge fund. Yeah. Um I do I'm going to talk about the Nvidia puts uh in the video tomorrow because I I agree this sounds like insanity, but the Iran peace auction right now.
So, we're going to do the video tomorrow to make sure cuz we have no idea what's going to happen on Monday as of right now. So, Yeah. Yeah, very fair. Um so, just to kind of highlight where we are exactly as far as these companies that he just purchased into. So, JD basically flat for the year, down 2%.
It actually did have a 2% pop on the news here. It's kind of interesting from a standpoint of who exactly gets a pop on something like this and who doesn't. So, $46 billion market cap to give you an idea of the size here. Um comparison to our Alibaba, right? Uh that's not the accurate market cap right there.
So, uh I'm I'm I'd have to revisit to see exactly what it is at this point. Um but I don't know why it's calculating it that way. But anyways, um from a valuation standpoint, they basically saw no pop on the news and they're down 18% year to date. So, Uh 300 304 billion. Okay. I also that's that's closer to what I what I would have thought.
So, you know, it's it's interesting to see that like a new story like this can move a smaller company. Honestly, it may be just kind of intraday like or day-to-day variation in stock price, too. Who knows how much of it was driven by that. Particular news article, um GameStop actually had a bigger pop on the day.
Um makes more sense. People in GameStop, it's a smaller company and they're a little bit more enthusiastic, if you will. Uh a lot more people that will follow Michael Burry, a lot more individual investors as a whole. Stock's actually up 12% year to date, which is pretty impressive considering where the market is this year.
So, interesting. Yeah, that's fair. Okay. I wanted to show you something kind of crazy here about uh Nvidia and uh where his puts are compared to where the valuations are right now. So, $4.6 trillion market cap, all right? Insane how large this company has become. Um stock price hit hanging out here just under 190 a share.
If you meant to remember from the article, he mentioned his strike is like 115 and expires in January of 2027. Uh so, that's this is about the last time Nvidia saw that share price was like May of 2025. So, it's been about a year, almost a year. Yeah, okay. I mean, I have um do you have do you have one more slide or no?
I do have a chart I can show on the video cuz I mean their run-up is insane. Yeah. Well, yeah. I mean, 70% in a year, that's that's pretty bananas. Yeah, I mean, it's it's absolutely ridiculous. I'm going to just move one thing here. Um so, basically like in the last like 6 days, like 165 to 188, but it's kind of all chip stocks.
Like AMD uh makes absolutely no sense. And then Intel, same thing. Uh I don't know what's happening. It's trading like the war is already over. Um but yeah, his his Nvidia put is very interesting to me cuz I agree you want to buy you know, the shovels not the gold. Nvidia makes sense, but we just had a whole helium problem.
There's all these companies usually have a stash of 6 months of helium. I have no idea how we can justify this price for Nvidia. I don't I don't really get it. Doesn't make a lot of sense to me. Yeah, there's a lot of ways you could take that, but I mean, the market cap I mean, their PE is not as egregious as it once was because they really have grown into this price.
Um it is insane just how much money they they make quarter after quarter and investing cycle is still continuing, you know, I agree. My biggest issue is the amount of deals that were made that have not followed through. That is more my problem. Cuz it's counting on a lot of future income that it looks like every company doing data centers is now pulling back.
Yeah, which is where they get all their money from. Well, and then I mean, he's counting on like what almost like a 50% retracement, which is I mean, I guess it's it's possible. It's just be pretty crazy to think what the market overall is doing if Nvidia, the most valuable company basically on in the world here is looking at a 50% price cut.
Yeah, I don't know 50% sounds That sounds That sounds a lot. I don't know if that's going to happen. It's like what It's like 115 compared to 190, right? So, that's like what, 40-something percent, maybe somewhere in that ballpark. Um there was also a buy for Adobe. I personally don't know anything about Adobe.
We had a couple people asking to look into it, so I can take a look. Um I know that it's not doing great, which is probably why he bought it. Um but yeah, I'll take a look at that. Um definitely an interesting buy by Michael Burry. Definitely interesting to do it right before the peace talks cuz I will say whatever happens today and or tomorrow really dictate what happens on Monday.
Like massively dictate. So, kind of wild to add to any puts or calls. I don't I don't know what's going to happen. So, Yeah. We're at a point in the market where a single tweet can cost you $10,000 or more in either direction, depending on your portfolio size. Yeah, great. All right, let us know what you think, guys. Catch you on the next one.
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