Last week he was shorting NVIDIA, Micron, Applied Materials and the entire semiconductor ETF, publicly saying AI chips could drop 30%.

This week he suddenly went all-in long, buying two companies abandoned by the market.

In 2008 he bet early on the subprime collapse, became a legend, and was later turned into the movie *The Big Short*.

Michael Burry's investing style boils down to one word: contrarian.

Yesterday he disclosed another all-in long position: 60% Flutter Entertainment, 40% DraftKings.

These are the two largest online sports betting operators in the U.S., beaten down badly over the past year.

Flutter fell from a 52-week high of $313 to around $110 — halved and halved again. DraftKings dropped 45% from its high.

Core reason for the sell-off: prediction markets.

Platforms like Polymarket and Kalshi let users trade event contracts directly, bypassing the tax and licensing systems of traditional gambling.

Monthly volume surged from under $5 billion last September to $24 billion this April.

Two weeks ago Meta was exposed to be developing a prediction market app "Arena," and the news hit both stocks again.

Burry's judgment is the complete opposite of the market.

He believes prediction markets operate inside a regulatory loophole, right next to a highly regulated, high-tax industry.

This asymmetry won't last long. The CFTC already proposed new rules on June 10, aiming to bring prediction markets under formal regulation.

Once regulation lands, the cost advantages of these platforms vanish, and traffic flows back to licensed operators.

His take on the two companies: DraftKings is at an inflection point, shifting from burning cash to chase market share to releasing profits. Flutter had capital-allocation missteps in the past, but has a very strong foundation and clear scale advantages.

On the same day he also added to his JD.com position, believing that after the AI and memory chip frenzy in Korea and Japan cools, capital will rotate into Chinese assets.

Shorting the best AI sector in the entire market while going all-in on battered gambling stocks and China names no one else touches.

He always stands against consensus, and every time he bets he shows his cards publicly.

Most people already treat him as a contrarian indicator — shout enough times, you'll get one right.

😂😂