After abandoning his last known major short – the 2023 bet against the semiconductor industry – Michael Burry has become known for some highly successful and some exceptionally controversial long positions.
Indeed, some of ‘The Big Short’ investor’s biggest portfolio holdings, per the latest available 13-f filings, include a set of Chinese stocks with a lackluster track record but also several exceptional performers such as the payments processing firm Shift4 Payments (NYSE: FOUR), and the luxury online retailer RealReal (NASDAQ: REAL).
Given the mix of strong, failed, and lackluster stock picks and the market uncertainty prevailing at the start of 2025, Finbold decided to consult its very own artificial intelligence (AI) tool on how Burry’s biggest positions might perform by the end of the first quarter (Q1) of the year.
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Finbold AI predicts late Q1 price of Burry’s top 5 holdings
To begin with, Finbold’s AI tool used trading signals such as the relative strength index (RSI) and simple moving averages (SMA) to asses that Burry’s biggest holding, Alibaba (NYSE: BABA), a stock that managed to rise 24.17% in the last 12 months despite the turbulence, is set to gain another 31.17% by late Q1 and climb to $112.50.
The forecasted upside for another major holding, JD.com (NASDAQ: JD) – a stock that surged an impressive 78.19% in the last 52 weeks – is somewhat more modest and came in at an average of 6.32% for a climb to $41.25.
Being given a respite from Chinese stocks, Finbold’s AI tool estimated that the American payments processor Shift4 Payments is likely to trade mostly sideways and climb only another 2.81% to $114.12 in the next 60 days. Though the predicted upside is limited, it is worth pointing out that, with a press time price of $112.98, FOUR shares are 50.78% in the green in the last year.
Finally, the tool tackled the only two big losers among Michael Burry’s big holdings. Baidu (NASDAQ: BIDU), a firm that fell 16.85% in the last 12 months, is set for an impressive 27.92% rise by the end of Q1 2025 and a climb to $105.25.
The outlook for Olaplex Holdings (NASDAQ: OLPX), a firm whose equity collapsed 31.60% in 52 weeks, is even more positive, with a predicted upside of 44.2% to $2.30.
Finbold AI forecasts you’d make this much money if you invest in Burry’s top holdings
Should the AI prediction tool prove correct and one chooses to equally divide a $1,000 investment across Burry’s top 5 holdings on January 20, they would look at a total asset appreciation of 22.42%, as their holdings would grow to a collective value of $1,224.18.
On BABA shares, the trader would see $200 turn into $264, on JD into $213.45, and on the third Chinese stock, BIDU, to $254.26. Looking at the two American companies, Olaplex and Shift4 Payments, they’d grow to $291 and $201.47, respectively.
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