Nebius Climbs 4% Despite Michael Burry’s Bigger Bearish Bet; CoreWeave Ticks Up, Cloudflare Slips

Famous “Big Short” investor Michael Burry has apparently hardened his stance against Nebius Group (NASDAQ:NBIS | NBIS Price Prediction), and Nebius stock is climbing anyway. Nebius stock is up 4% to $241.80 early in the session, leaving NBIS shares up 189% year to date. That rally runs in the opposite direction from how a larger, more leveraged position from a well-known bear would normally land.

CoreWeave (NASDAQ:CRWV) stock is also rising 2% to $86.93, a smaller advance for another artificial intelligence (AI) name Burry cited in his post. Cloudflare (NYSE:NET) stock is slipping 0.6% to $351.96, a modest pullback that sets the network security company apart from the AI infrastructure trade.

The First Trust Cloud Computing ETF (NASDAQ:SKYY) is practically unchanged, a sign that the cloud group as a whole is sitting still while Nebius climbs. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.3%, leaving the broad market slightly lower.

Burry Swaps His Nebius Short for June Puts

After Monday’s close, Burry wrote on Substack that he had covered his short common-stock position in Nebius and replaced it with June put options in the double-digit strike price range. According to Burry, the same shift covered short positions in several other AI-linked names, including CoreWeave, where he hadn’t yet been able to buy puts at an attractive price. This is the first full trading day since that post.

Burry said the change came from weekend research. The research led him to believe the bubble in AI may burst “sooner than later,” and he noted that he was “moving timelines up” and wanted “more leverage” in his short positions. Put options gain value as a share price falls, so the new position is a bearish stance on Nebius stock, and the double-digit strike range Burry described sits far below where Nebius stock trades now, which means the puts pay off only on a very large decline.

Nebius Rallies Alone as Cloud Names Stall

Nebius stock is climbing while the cloud fund sits flat, which points to buying concentrated in a single name more than a bid for the whole group, but Burry framed his shift as a view on AI stocks generally while NBIS stock is the one pulling away from the pack.

CoreWeave also appeared in Burry’s post, and its slower advance leaves Nebius as the clearest act of defiance. Cloudflare sits in a different corner of the cloud market as a network security provider, so its slip lines up more closely with the flat sector fund than with the AI compute trade.

The First Trust Cloud Computing ETF listed CoreWeave and Cloudflare among its holdings as of June 30, with no Nebius position disclosed. That gap helps explain how the fund can stay flat while Nebius shares rally, since the benchmark carries no direct exposure to the biggest mover in this group.

Weighing the Bull and Bear Case for Nebius

Optimists argue that the gain in Nebius stock this year reflects demand for AI cloud capacity, a driver that stands apart from any single short seller’s trades. Within the past week, BNP Paribas upgraded its rating to Outperform from Neutral and set a $399 price target on Nebius stock, citing a significantly improved outlook. That call gives shareholders a research-backed balance to Burry’s thesis.

Burry’s argument centers on timing. A broad unwind across AI stocks is the thesis, reaching well beyond Nebius (riding a mania is one thing, planning the exit is another, and we covered both sides in a free bubble survivor’s handbook). A name that has run as far as Nebius has this year sits among the most exposed if that unwind arrives early.

What to Watch Next

Nebius now finds itself caught in a public split between a prominent short seller and a research firm that recently turned more constructive. Shareholders should keep an eye out for any follow-up post from Burry on CoreWeave, since he stated he’d yet to buy puts there at a price he found attractive. A Nebius stock gain that holds up against a flat cloud fund would keep the single-name story intact.

The next catalyst for Nebius could come from another Burry disclosure or fresh analyst research on AI cloud providers. For now, the resilience of Nebius stock against a well-publicized bearish stance is the clearest signal in the group.

Contact [email protected] for any questions or corrections.