Michael Burry's Nebius Short Is Underwater After a 454% Revenue Quarter

Nebius reported second-quarter revenue of $582.3 million, up 454% year over year.

Michael Burry disclosed a short position in the stock at around $212 a share on Aug. 6; shares trade above $250 as of this writing.

Depreciation and amortization of $259.7 million exceeded the company's $236.2 million of adjusted EBITDA in the quarter.

On Aug. 6, Michael Burry disclosed a short position in Nebius Group (NASDAQ: NBIS) at around $212 a share, a bet he described as larger than the one he placed against Oracle at the same time. Six days later, the artificial intelligence (AI) cloud company reported second-quarter results before the market opened on Wednesday.

The report did not go his way. Revenue rose 454% year over year to $582.3 million, and management reaffirmed its full-year guidance. The stock jumped about 34% to around $259 as of this writing -- about 22% above the price he disclosed shorting at.

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But a losing first week doesn't settle whether he's right. The more useful question, I'd argue, is which of Burry's concerns the quarter actually answered, and which one it left standing.

The demand side of the short case looks weaker today than it did on Aug. 6.