Michael Burry, the investor whose 2008 housing crisis bet was immortalised in The Big Short, has disclosed two significant new long positions in beaten-down stocks, adding Lululemon Athletica Inc. [NASDAQ: LULU] and MercadoLibre Inc. [NASDAQ: MELI] to his Scion Asset Management portfolio at what he considers compelling valuation entry points.

Burry’s Lululemon position was disclosed as part of Scion’s Q1 2026 13F filing to the SEC, with LULU described as one of nine stocks the firm is currently betting on following recent aggressive analyst downgrades that have left the stock with no consensus price target upgrades from any analyst over the past month.

The most recent ratings from Bernstein and Piper Sandler, dated April 27 and April 23 respectively, both reiterate a Hold, confirming that Wall Street has essentially stopped expecting a near-term catalyst for the stock, precisely the kind of conditions that historically attract Burry’s contrarian interest.

Burry’s MercadoLibre position was publicly disclosed faster and in more direct terms, with the investor writing on his Substack newsletter on May 9 that he purchased a new full position in MELI in “the $1600s” the morning after the stock fell nearly 13% following the company’s first-quarter earnings release.

The Q1 2026 report that triggered the selloff was not uniformly bad, with MercadoLibre posting revenue of $8.85 billion, up 49% year-over-year and the fastest growth pace in nearly four years, beating the consensus of $8.37 billion by more than 6%.

The earnings per share of $8.23 came in below consensus estimates however, and operating income of $611 million fell 20% year-over-year, with operating margin contracting 600 basis points to 6.9% as the company invested heavily in credit and logistics expansion, driving the double-digit post-earnings decline that Burry characterised as his buying opportunity.

Burry’s valuation logic for MercadoLibre was explicit: he wrote that MELI was “well below my IV15 price, at which I expect long-term 15% annualised returns at 15 years or more,” applying an intrinsic value framework that factors in expectations for nearly $40 billion in 2026 revenue, up approximately 30% from 2025 levels.

He also noted that MercadoLibre’s stock-based compensation is cash-settled rather than equity-settled, a structural detail that matters for calculating real earnings power because it prevents the dilution that otherwise inflates reported earnings per share at many technology peers.

Burry’s simultaneous warning about a potential tech bubble, expressed via a separate Substack post on May 8 comparing the semiconductor sector’s parabolic gains to 1999, adds a layer of context: even as he warns about AI valuations broadly, he is actively hunting for deep value in non-AI names that the market has left behind.