Though Michael Burry has, in the last decade and a half, failed to make a trade to truly match his famous ‘Big Short’ during the 2008 financial crisis, he has, nonetheless, remained a highly active – and frequently successful – investor.
The final quarter of 2023 was particularly noteworthy as Burry and his Scion Asset Management went on a veritable buying spree, acquiring the stocks of more than a dozen companies.
Among the new long positions, several stand out, with few being as interesting as Amazon (NASDAQ: AMZN), given that the e-commerce and technology giant has done much to expand – with AWS, its cloud business in particular focus – and has recently hit new all-time highs (ATH) in the stock market.
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How much did Burry make on his Amazon bet?
Unlike with his more controversial Alibaba (NYSE: BABA) bet, which has been teetering on the edge of profitability for months, there is little doubt that Burry is substantially in the green on his investment in Amazon.
While it is impossible to gauge the exact timing of ‘The Big Short’ investor’s purchase, AMZN shares were trading in the range between approximately $120 and $155 during the final trimester of 2023 meaning that a purchase price of $130 constitutes a plausible estimate.
This means that Burry invested approximately $3.9 million in the quarter to acquire 30,000 Amazon shares.
Since then, AMZN has seen significant growth, and with Amazon’s stock price today standing at $190.11, ‘The Big Short’ investor’s 30,000 shares are, at the time of publication, worth approximately $5.7 million.
This means that provided that Burry still holds his AMZN shares, he is $1.8 million in the green on the investment.
Additionally, even if he sold toward the end of the first quarter of 2024 – a piece of information that will be known for certain in the coming weeks with the release of the updated 13-F for Scion – Burry would have still been approximately $1.3 million in the green, despite potentially missing the most recent surge to a new all-time high.
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