Michael Burry Stock Portfolio: 5 Stocks He Sold

In this article, we discuss the 5 stocks to sell now according to Michael Burry. If you want to read about some stocks to sell now per Burry, go directly to Michael Burry Stock Portfolio: 10 Stocks He Sold.

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

Number of Hedge Fund Holders: 61  

Decline in Share Price Over Past Year: 37%  

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media company that provides content across various distribution platforms. On November 3, The CEO of Warner Bros. Discovery Inc, on the earnings call, announced that the company’s streaming platform will combine HBO Max and Discovery+ and will roll out by spring 2023. Burry held a stake in the firm in the second quarter of 2021 and the first quarter of 2022. This was sold off completely in the second quarter of 2022. 

On November 7, RBC Capital analyst Kutgun Maral maintained an Outperform rating on Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock and lowered the price target to $27 from $44, noting that the company reported mixed third quarter results.

At the end of the third quarter of 2022, 61 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Warner Bros. Discovery, Inc. (NASDAQ:WBD), compared to 68 in the preceding quarter worth $2.3 billion. 

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, rebuild 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.”