Burry’s Depreciation Gripe Shines Spotlight on Big Tech Profits

Big Tech’s ability to churn out ever-increasing profits has underpinned investors’ ongoing enthusiasm for the stocks regardless of their soaring valuations. But what if those numbers are overstated?

That’s the question famed investor Michael Burry raised in a much-discussed social media post this week. The head of Scion Asset Management, who’s best known for his bet against the US housing market before the 2008 global financial crisis and recently terminated his hedge fund’s registration with the Securities and Exchange Commission, suggested that the lengthening depreciation schedules for computing gear from technology behemoths like Meta Platforms Inc. and Alphabet Inc. enables them to artificially pad their earnings growth.