Michael Bury Warns of “Earnings Fraud” From Extended Asset Lives

Investor Michael Burry has accused major tech firms of inflating profits by improperly extending the useful life of their equipment. He argues that the Nvidia-driven spending surge at hyperscalers should shorten depreciation cycles. Burry estimates this practice will result in $176 billion in understated depreciation from 2026 to 2028. He singled out Oracle and Meta, claiming their earnings could be overstated by 27% and 21%, respectively. Full details are anticipated on November 25.