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Michael Burry’s third-biggest stock position soars 18% in a day

Michael Burry's third-biggest stock position soars 18% in a day

Earlier this year, the investing world was taken aback when legendary investor Michael Burry, known for his lucrative ‘Big Short’ against the housing market in 2008, made another bearish bet, this time targeting US stocks

Simultaneously, regulatory filings unveiled various other moves made by Burry and his hedge fund, Scion Asset Management, in the stock market. Notably, they increased their holdings in travel and healthcare companies, including Expedia (NASDAQ: EXPE). 

While this may not have been a shocking move given Expedia’s prominence in the travel technology sector, it is proving to be an increasingly wise decision for Burry and Scion’s clients. 

EXPE stock hits 3-month high

On Friday, November 3, shares of Expedia soared more than 18% at the market open to $112.12, the highest level since early August. 

EXPE 1-day price chart. Source: Finbold

Notably, Finbold reported earlier this month that Expedia’s stock was well-positioned to attract investors’ attention after recent data pointed toward a resurgence in travel demand ahead of the winter holidays. 

The upswing was mainly driven by an impressive earnings beat the company posted in the third quarter and record revenue. 

The travel company posted adjusted earnings growth of 33% to $5.41 per share, while revenue hit a record quarterly high of $3.93 billion. The numbers were well ahead of analysts’ expectations of earnings per share (EPS) of $5 and revenue of $3.68 billion. 

“Our strong third-quarter results with record revenue and profitability came in ahead of our guidance and reflect the resilience of travel demand.”

– Expedia’s CEO Petern Kern said.

In addition, Expedia announced a fresh $5 billion stock buyback plan, further lifting investors’ sentiment toward the stock. That represents a significant figure, given that the company’s total market cap currently stands at around $16 billion. 

Burry’s investment in EXPE

The regulatory filings published in mid-August revealed that Burry and his Scion Asset Management purchased 100,000 Expedia shares at $109.39 apiece. The move turned EXPE into Burry’s largest single stock holding. 

This means that following today’s price surge, Burry’s profit from his long position in EXPE stands at more than $3 million.

Apart from EXPE, other notable stocks Burry invested in in the second quarter of 2023 include Charter Communications (NASDAQ: CHTR), Generac Holdings (NYSE: GNRC), Geo Group (NYSE: GEO), and Vital Energy (NYSE: VTLE), among others. 

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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