Nebius’s Price Hike Suggests Michael Burry Made a Mistake and Is Shorting the Best Neocloud Stock

Nebius’s Price Hike Suggests Michael Burry Made a Mistake and Is Shorting the Best Neocloud Stock

• NBIS
• CRWV
• NVDA
• ORCL

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On August 7, Michael Burry revealed a new short position in Nebius Group (NBIS). Rather than paying what he described as exorbitant prices for puts, Burry chose to short the equity directly. The move represents a particularly clear bearish call on a rapidly growing AI infrastructure company. Michael Burry's timing is particularly notable because Nvidia (NVDA) recently disclosed a 9.3% stake in Nebius. Moreover, multiple comparisons have also favored NBIS over CoreWeave (CRWV) as the stronger of the two major neocloud companies. In fact, I also pointed this out in my Nebius vs. CoreWeave article a while back. Burry's trade raises a key question: Does he believe Nebius is nearing the peak valuation, or is the market simply overestimating a company that many investors see as one of the sector's strongest players?

Burry Bets Against Nebius While Returning To Oracle

Burry's recently disclosed short position in Nebius at $211.77 per share reflects his broader concerns about growing leverage risk from off-balance-sheet commitments across the technology and cloud sectors. He also reopened a short in Oracle (ORCL) at $144.63 per share, just days after closing his previous position in the stock for a substantial profit. That earlier trade involved January 2027 puts with strikes in the low 100s, although Burry said he could return to puts if volatility falls. And just a few days ago, Burry closed his short position in CoreWeave. As he is still short Nebius, it makes me wonder whether he is really bearish on the company, or just waiting for a better exit point. However, last Thursday, Nebius announced it was raising compute prices for selected Nvidia chips starting Oct. 1 — another piece of bad news for Burry.

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Why Nebius May Be the Wrong Neocloud to Bet Against?

The case against a Nebius short starts with Nvidia's investment. The shares surged more than 18% in a single session after Nvidia disclosed its stake in Nebius. The investment signals strong support from one of the AI industry's most important suppliers. Nebius had $9.37 billion in cash against $9.48 billion in debt. By comparison, CoreWeave held $2.27 billion in cash against $35.15 billion in debt. This highlights Nebius' significantly stronger balance sheet relative to CoreWeave.

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