Michael Burry's New Move: Buying Flutter and DraftKings

Michael Burry, the investor who correctly predicted and profited from the 2008 US housing market collapse, has now caught attention by buying shares of Flutter Entertainment and DraftKings. Burry does not hide his expectation that regulatory bodies will soon mitigate the threat posed by prediction markets, as these markets operate under Commodity Futures Trading Commission oversight nationwide but avoid state gaming taxes. According to Burry, the political climate will not tolerate this situation and will lead to the regulation and taxation of these markets.

Investment Details

■Bought Flutter shares at about $107.

■Bought DraftKings shares in the low $26s.

■The investments are weighted roughly 60/40 in favor of Flutter.

Market Situation

■Flutter shares are down 50% year-to-date.

■DraftKings shares are down 21% year-to-date.

Expert Analysis

Michael Burry's move signals a strong expectation that regulatory and tax measures will increase in emerging sectors like sports betting and prediction markets. This could impact the future growth and profitability expectations of the companies and the sector. Additionally, Burry's purchase of JD.com shares at $27.58 indicates his continued interest in Asian markets.