U.S. stocks move: Caterpillar drops 3% pre-market after being shorted by "big bear" Michael Burry
- Golden Ten Data July 17th｜Caterpillar fell 3% in pre-market trading, at $849.95.
- On July 1, Burry announced his first short position on Caterpillar, at a shorting price of about $1060.98. He believes the company’s valuation has already fully reflected the benefits of AI infrastructure, and the price-to-sales ratio is at its highest level in at least 30 years.
- The core of this short is the market's valuation divergence regarding Caterpillar's "AI shovel seller" logic. Due to surging demand for data center power generation equipment, the company has been revalued as a core supplier of AI infrastructure, with its share price rising by more than 150% in the past 12 months.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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