Michael Burry Sells Lululemon Stake for Tax Reasons, Plans Buyback; Nvidia Hits Record High

Investor Michael Burry is selling his largest holding, Lululemon (LULU-US), swapping the shares into Deckers Outdoors (DECK-US) for tax benefits, he said in a Substack chat. He plans to repurchase Lululemon after the IRS 30-day wash-trade restriction expires, roughly a month later. The stock sits at an eight-and-a-half-year low. Wall Street remains bearish. Of 37 ratings tracked by FactSet, 27 are "Hold" and six are "Underweight" or "Sell." Lululemon trades at just 11 times estimated earnings for the next 12 months. The cautious stance contrasts with analyst optimism broadly: of 13,097 S&P 500 ratings tracked by FactSet, 60% are "Buy," 36% "Hold" and 5% "Sell." Meanwhile, Nvidia (NVDA-US), one of Burry's short targets, hit a record. The stock rose 2.1% Monday to close at $238.90 a share, surpassing its prior record close of $235.74 set in May. Market capitalization reached $5.75 trillion.