Michael Burry’s Scion Asset Management disclosed a series of meaningful position changes in its Q1 2026 13F filing to the SEC, revealing new and expanded holdings in a cluster of stocks that share a common thread: deeply out-of-favour names trading at multi-year lows against a backdrop of analyst pessimism and institutional indifference.
The most publicly visible of the new positions is MercadoLibre Inc. (NASDAQ: MELI), which Burry disclosed in unusually direct terms on his Substack newsletter on May 9, writing that he had purchased a new full position in MELI in the $1,600s the morning after the stock fell nearly 13% following the company’s Q1 2026 earnings release.
Burry’s logic for MercadoLibre was explicit, writing that the stock had fallen well below his IV15 price, the level at which he expects a stock to generate 15% annualised returns over a 15-year time horizon, and citing expectations for nearly $40 billion in 2026 revenue, up approximately 30% from 2025 levels, as the revenue foundation that made the valuation compelling despite the post-earnings selloff.
The earnings that triggered the decline were mixed: first-quarter revenue hit a record with strong double-digit growth, but earnings per share of $8.23 came in below consensus, and operating income of $611 million fell 20% year-on-year with margin compression that unsettled investors who had been pricing in a smoother profitability trajectory.
Lululemon Athletica Inc. (NASDAQ: LULU) is another new or expanded position in Scion’s Q1 filing, with the athletic apparel company trading at multi-year lows and carrying Hold ratings from Bernstein and Piper Sandler, two of the most recent analyst assessments of the stock, with neither firm expecting a near-term catalyst to reverse the slide.
That Wall Street indifference is precisely the kind of condition that has historically attracted Burry’s interest, with his most celebrated positions having been built during periods of maximum analyst apathy or active hostility toward a thesis.
Lululemon faces genuine operational headwinds including slowing North American revenue growth, a management transition, and mounting competition in the premium athletic apparel segment from both established brands and direct-to-consumer challengers, but its balance sheet, brand equity, and cash flow generation remain materially intact.
Adobe Inc. (NASDAQ: ADBE) and PayPal Holdings Inc. (NASDAQ: PYPL) round out the key additions in Scion’s Q1 filing, both representing large-cap technology companies that have significantly underperformed the broader AI-driven rally and whose valuations have compressed to levels that attract value-oriented investors even as the market focuses its enthusiasm elsewhere.
Adobe has faced persistent concerns about whether generative AI will erode demand for its creative software suite or accelerate it, with the stock caught between a genuinely uncertain competitive outlook and a business that still generates enormous free cash flow and maintains pricing power across its enterprise client base.
PayPal’s discount to its own historical multiples and to fintech peers has deepened as competition from Apple Pay, Block, and Stripe has intensified, but the company retains a payment volume base of hundreds of billions of dollars annually and has been implementing margin improvement initiatives that management argues will begin to show up meaningfully in the numbers through 2026 and 2027.
Scion Asset Management currently holds nine positions in total following the Q1 filings, a highly concentrated portfolio that reflects Burry’s longstanding preference for deep conviction over diversification, and one that is overwhelmingly positioned in value and contrarian opportunities rather than the AI growth names that dominate the broader market conversation.
