The Big Short Investor Is Buying This Stock At a 50% Discount
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Michael Burry, the investor made famous by The Big Short, said in a Substack post on Wednesday, November 11, 2026, that he bought back Lululemon (NASDAQ:LULU | LULU Price Prediction) shares that day. He had sold the position in October. No SEC filing reflects the purchase, and he did not disclose its size or the price he paid.
Lululemon closed at $107.45, down 2.65% from Tuesday’s $110.37. Earlier in the session, it fell to $105.98, about 4% below the prior close, on 2.74 million shares. Shares cut their losses after his post went up, although the timing alone does not prove the post caused the recovery.
Burry sees a cheap stock with limited downside. The company, however, has cut its full-year revenue outlook twice since March, to $10.35 billion to $10.50 billion.
What Burry Disclosed
He called Lululemon “a good bet with little downside” and said he trusts its research and product development. He also said new management has done little to fix what he called the “black hole” of the brand’s marketing.
The October sale and the November buyback fit a plan he described in October, when he said he would buy back after the 30-day wash-sale restriction expired. Under the wash-sale rule, you cannot deduct a loss if you buy substantially identical stock within 30 days before or after the sale. That points to tax-loss harvesting (selling at a loss to use it against taxes) rather than a change in your view of the company.
In the same update, he added to Adobe (NASDAQ:ADBE), PayPal (NASDAQ:PYPL), JD.com (NASDAQ:JD), MercadoLibre (NASDAQ:MELI) and a natural-foods grocer. He is buying a group of beaten-down stocks, and Lululemon is one of them.
Where the 50% Discount Comes From
The 52-week high is $225.98, and the highest close in that span was $215.88 on January 6, 2026. Wednesday’s close sits about 52% below the high and about 50% below that closing peak.
The stock ended 2025 at $207.81 and is down 48.29% year to date. It also trades about 79% below its all-time high of $516.39. Each of these discounts compares the price with past prices. None of them is an estimate of what the business is worth.
Burry Is Buying a Rebound in Progress
The stock hit a 52-week low of $90.38 in October and closed at $91.88 on October 7. It is now up about 19% from that low and 13.51% over the past month, so Burry bought after the rebound had already started.
Short interest is 14.69% of shares outstanding and 15.99% of the float. That is a large number of investors betting on further falls. If results surprise to the upside, short sellers may have to buy shares to close those positions, and that buying can push the price higher.
Why Earnings Still Decide This
The stock trades at 9 times trailing earnings but 13 times forward earnings. A forward multiple above the trailing one means analysts expect profits to fall, and that expected decline is the core of the bear case.
Second-quarter Americas comparable sales fell 12%. Gross margin was 60.5%, but tariff refunds accounted for 560 bps of that, meaning the underlying margin shrank.
What Could Drive LULU Stock From Here
On balance, the bullish evidence looks stronger. A trailing multiple of nine, $330.0 million in second-quarter buybacks, and product strength that even a skeptical buyer praises outweigh a forecast that already assumes earnings will fall.
The test is the third-quarter report, expected December 10 but not yet confirmed by the company. Revenue needs to land within the $2.29 billion to $2.32 billion guidance range, and the Americas decline needs to narrow from 12%. If the company cuts guidance a third time or the stock closes below $90.38, Burry’s thesis of limited downside would be in serious doubt.
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Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
