Tech Stocks Drop

 11/14/2025

 

Technology Shards Sell Off

 

NASD drops 2.3% Thursday Yes, Virginia, the hottest stocks can reverse direction.

Michael Burry was the subject of Michael Lewis book The Big Short.

Burry gained an instant reputation for betting the big banks were on the wrong side of the mortgage market in 2007. He was right. The story also became a movie which you can watch for free on Paramount Plus.

Last week I noted that Palantir was trading at 200x price to earnings ratio. Here is Burry’s latest move,.

In his post on X, Burry said he spent about $9.2 million buying up about 50,000 put options on Palantir, saying that the options would allow him to sell the stock at $50 apiece in 2027.

The put options convey the right to sell shares at a set price in the future and are typically bought to express a bearish or defensive view.

Palantir’s shares were trading at $178.29 on Thursday, giving the company a market value of $422.36 billion.

If correct Burry will earn $128.29 x 50,000 =, well, I am not sure my calculator will print that many digits.

Palantir’s CEO upon learning of this sputtered about earnings and outlook, denying, of course, this could happen.  PLTR dropped 6.5% Thursday.

For months this column has warned of overvaluations. We cited the dot.com and sub-prime drops as very similar. Stocks are trading lower on Globex this morning.

Howard Schulz is attempting to turn Starbucks around, yet again.

The union responded by striking at 65 stores, good luck Howard.

Crude oil continues stuck around $60.

The International Energy Agency does see increased oil demand.  But oil producers are expanding output much faster than demand. Blobal inventories reached their highest level since July 2021. That, simply put, is why oil remains stuck at $60.

Realize the bond market is far larger than the stock market. Trump  would pack the FED with low rate champions if  he could. But, as pointed out here, the FED only sets the overnight lending rate.

Two weeks ago mortgage rates were 6.17%. Today rates are6.24%.  A year ago rates were 6.78%. The trend is changing from down to up, no matter what the FED does.

Headlines suggest the FED is split on lower rates. Given the unhappiness of ‘affordability’, another cut may not be in the cards, that is what the mortgage market is saying.

Gold and silver pulled back yesterday and this morning. It may be that hard assets are topping now with the stock market.

 

Dennis.elam@att.net