Understanding Apple’s short and long-term strategy

According to a Securities and Exchange Commission (SEC) filing dated May 16, Michael Burry is shorting Apple using a 206,000-share put option. Burry is famous for foreseeing the housing bubble in the mid-2000s and the subsequent domino market meltdown.

He also spearheaded the attack against Elon Musk’s Tesla, as well as bitcoin, dogecoin, and Robinhood, during the meme-stock investment in GameStop.

Burry purchased Alphabet and Meta Platforms shares through Scion Asset Management, according to Business Insider. Every trader and the financial investor takes careful attention when Burry makes a market move. Burry is perplexing the financial industry once again, leaving them wondering what he sees that they don’t.

Warren Buffett, according to The Motley Fool, has strengthened his holdings by purchasing additional Apple stock. Many people wonder who is right: Burry or Buffett, as two renowned investors with very different methods — but both with enormous impact — go their separate ways. Stephen Wright, writing at Fool, offers an intriguing response: they’re both correct.

According to Wright, Buffett is a long-term investor, but Burry is a short-term trader. Buffett does not make predictions about stock prices; instead, he invests in firms that he feels will have long-term value. Burry, on the other hand, is interested in the near-term performance of Apple shares.

Inflation, supply chain concerns that complicated the technology industry, China’s COVID-19 lockdowns, and NASDAQ performance is all likely to have a short-term impact on Apple shares.

According to a Securities and Exchange Commission (SEC) filing dated May 16, Michael Burry is shorting Apple using a 206,000-share put option. Burry is famous for foreseeing the housing bubble in the mid-2000s and the subsequent domino market meltdown.

He also spearheaded the attack against Elon Musk’s Tesla, as well as bitcoin, dogecoin, and Robinhood, during the meme-stock investment in GameStop.

Burry’s bearish position, according to Benzinga, is worth about $36 million if he executes it. It is the most valuable asset in his portfolio. Since early 2019, Apple stock has more than quadrupled in value. Apple stock, on the other hand, is down 20% year to date by May 2022.

The stock price of Cupertino-based corporation has dropped by 16 percent in only the last quarter.

Burry’s portfolio reflects his belief in the American market. In the third quarter of 2021, he reduced his interests from 20 to just six, with a value of $140 million to $42 million. He switched three of his remaining six assets in the fourth quarter, bringing his total to $74 million.