On August 14, 2025, the legendary ‘Big Short’ investor Michael Burry placed a massive $95 billion bet on Lululemon Inc. (NASDAQ: LULU) when the stock was trading at $195.
Since then, Lululemon shares have dropped roughly 45% to $108 at press time, June 24, 2026, marking their 52-week low after a rather difficult year that has seen the company’s market cap drop to just $12.5 billion.
In other words, Burry’s position is now worth roughly $52.2 billion less than at the end of the second quarter of 2025.
The majority of the troubles the company has faced since Burry made his bet had to do with softer consumer demand and broader economic headwinds.
Wall Street analysts have also lowered their expectations following the company’s latest financial results, with Freedom Broker and Bernstein lowering their price targets, citing revised revenue and profitability forecasts as well as concerns surrounding product launches.
Michael Burry loses another stock bet
On March 3 this year, Burry reportedly made a ‘significant’ investment in Adobe (NASDAQ: ADBE) as well, which actually led to a short-lived rally. However, this bet was also not so fruitful, as ADBE stock has lost approximately 27% by the time of writing, plummeting from around $270 to $197.
As Burry’s hedge fund, Scion Asset Management, was deregistered in late 2025, it is impossible to assess how big a loss it has truly been in terms of notional value. Still, Adobe has emerged as one of the worst-performing software stocks over the past year.
However, despite the steep decline, Adobe’s underlying business has continued to deliver solid results. In its second quarter of fiscal 2026, for example, the company posted record revenue of $6.62 billion, up 13% year-over-year.
Ironically, given Burry’s now characteristic distaste for artificial intelligence (AI), a key growth driver has been Adobe’s AI business. Notably, its AI-first annual recurring revenue (ARR) has more than tripled to exceed $500 million.
Wall Street now widely regards Adobe as a ‘Hold,’ according to TipRanks data as of press time, with an average price target of $257 for the next twelve months. In other words, Burry might be looking at a 30% gain from current levels by mid-2027.
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