Michael Burry is Selling These 5 Stocks

In this article, we discuss the 5 stocks that Michael Burry is selling. If you want to read about some more stocks that Michael Burry is selling, go directly to Michael Burry is Selling These 10 Stocks.

5. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Fund Holders: 68  

Warner Bros. Discovery, Inc. (NASDAQ:WBD), a media company, provides content across various distribution platforms. The company has increased focus in the digital space in recent years with investments in the streaming and gaming sector. On August 4, the firm posted earnings for the second quarter of 2022, reporting a revenue of more than $9.8 billion, up over 221% compared to the revenue over the same period last year. The firm said it had ended the second quarter with $3,896 million of cash on hand and gross debt of $53 billion. 

On August 23, Citi analyst Jason Bazinet maintained a Buy rating on Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock and lowered the price target to $21 from $29, noting the firm offered a direct-to-consumer pivot to investors. 

At the end of the second quarter of 2022, 68 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in Warner Bros. Discovery, Inc. (NASDAQ:WBD), compared to 47 in the preceding quarter worth $790.8 million. 

In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Warner Bros. Discovery, Inc. (NASDAQ:WBD) was one of them. Here is what the fund said:

“We sold the last of our shares in Warner Bros. Discovery, Inc. (NASDAQ:WBD) in early April. Luckily, we were able to sell the majority of our long-held holdings in the crazy run-up that accompanied the Archegos Capital debacle in early 2021. We did, however, re-build a position in the stock when the stock went back down and this second go was disappointing.

We weren’t happy with the shift in strategy from the company’s core non-scripted and documentary content—where it commanded a leading position— into the wider media business it dived into with the Warner Media acquisition. We were also unhappy with the resulting increase in debt levels. It was time to take our money and walk away.”