Michael Burry’s $1.1 Billion Options Bet Against Nvidia and Palantir Exposed: A Strategic Move by the ‘Big Short’ Icon

Spotify Reports Surge in Users and Profitability, Shares Climb

New York, NY – November 4, 2025 – Shares of Spotify Technology S.A.experienced a significant jump of 3.25% in early trading today following the release of its third-quarter earnings report. The streaming giant revealed significant growth in both user numbers and financial performance, exceeding analyst expectations and signaling a strong trajectory for the company.

Financial Highlights of Q3 2025

Spotify’s total revenues for the quarter reached €4.27 billion, equivalent too approximately $4.91 billion. This represents a 7% increase compared to the same period last year. More impressively, the company posted a net income of €899 million, or $1.03 billion, translating to adjusted earnings per share of €3.28. this result surpassed the predicted €1.96 per share according to estimates compiled by financial data provider FactSet.

User Growth Drives Positive Results

The company’s user base continues to expand rapidly. Spotify now boasts 713 million monthly active users, a considerable increase from the 640 million recorded in the third quarter of 2024.Premium subscribers also saw growth,climbing to 281 million from 252 million during the same timeframe. This user growth is widely considered to be a key driver of the company’s improving financials.

Innovation as a Catalyst for Expansion

Spotify’s success is partly attributed to the introduction of several key features in recent months. These include the launch of “lossless listening” for Premium subscribers, giving audiophiles a higher-quality audio experience. The implementation of enhanced playlist mixing controls and the introduction of direct messaging capabilities have also proven popular among users,fostering greater engagement with the platform. These features solidify Spotify’s position as a leader in the competitive streaming landscape.

Leadership Transition amidst Success

Despite the positive results, Spotify is preparing for a change in leadership. In September, co-founder Daniel Ek announced his transition from Chief executive Officer to Executive Chairman, effective by the end of the year, after nearly two decades at the helm. This decision, while marking the end of an era, appears to have had little negative impact on investor sentiment, as evidenced by the stock’s performance today.

Looking Ahead: Q4 Forecast

Spotify projects continued growth, forecasting a total of 745 million monthly active users by the close of the fourth quarter. This optimistic outlook suggests the company is well-positioned to maintain its momentum and solidify its dominance in the music streaming market.

metric	Q3 2024	Q3 2025	Change
Monthly Active Users (MAUs)	640 Million	713 Million	+11.4%
Premium Subscribers	252 Million	281 Million	+11.5%
Total Revenue (€ billions)	3.99	4.27	+7.0%
Net Income (€ millions)	676	899	+32.8%

Did You know? The global music streaming market is projected to reach $36.82 billion in 2025, with Spotify holding a significant market share.

Pro Tip: To maximize your Spotify experience, explore the platform’s personalized playlists and curated recommendations.

What impact will daniel ek’s leadership transition have on Spotify’s long-term strategy? How will Spotify continue to innovate to maintain its competitive edge in the streaming market?

The Evolution of Music streaming

The music industry has undergone a dramatic change in recent decades, shifting from physical media to digital downloads and, ultimately, to subscription-based streaming services. Platforms like Spotify have not only changed how we consume music but have also reshaped the economics of the industry, offering artists new avenues for reaching audiences and generating revenue. The success of Spotify, and competitors like Apple Music and Amazon Music, hinges on their ability to continually adapt to changing consumer preferences and technological advancements.

The rise of podcasting has also become a major component of Spotify’s growth strategy. By investing heavily in exclusive podcast content, Spotify aims to diversify its revenue streams and attract a wider audience. This highlights the importance of content diversification in the highly competitive streaming landscape, as platforms strive to become all-encompassing entertainment hubs.

frequently Asked Questions about Spotify

• what is Spotify’s primary revenue source? Spotify’s revenue primarily comes from Premium subscriptions and advertising.
• How does Spotify’s lossless listening feature work? Lossless listening provides higher-quality audio by preserving all the original data of a song, resulting in a richer listening experience.
• What are the benefits of a Spotify Premium subscription? Premium subscribers enjoy ad-free listening, offline downloads, and higher audio quality.
• What is Spotify’s strategy for podcasting? Spotify invests in exclusive podcast content and technology to attract more listeners and diversify revenue.
• How is Spotify adapting to competition in the streaming market? Spotify is focusing on innovation, content diversification, and user experience enhancements to maintain its competitive advantage.

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What factors might lead to Nvidia‘s stock price falling below teh $400 strike price, considering its current position as a leader in the AI chip market?

Decoding Burry’s Bold Move: Shorting Tech Giants

Michael Burry,famed for his prescient call against the 2008 housing bubble – immortalized in The Big Short – has once again made headlines with a significant $1.1 billion options bet against two tech behemoths: Nvidia (NVDA) and Palantir (PLTR). This aggressive strategy,revealed in recent SEC filings,has sparked intense debate within the investment community. Is this a calculated risk based on essential analysis, or a contrarian play destined to repeat the success of his previous predictions? Let’s delve into the details.

The Specifics of the Bet: Put Options and Their Implications

Burry’s Scion Asset Management didn’t directly short the stocks themselves. Instead,the firm purchased put options.Here’s a breakdown:

* Nvidia (NVDA): $800 million bet via put options with a strike price of $400, expiring in December 2025. This suggests Burry anticipates a significant decline in Nvidia’s stock price below $400.

* Palantir (PLTR): $300 million bet via put options with a strike price of $25, also expiring in December 2025. This indicates a belief that Palantir’s valuation will fall below $25.

What are Put Options? Put options give the buyer the right, but not the obligation, to sell a stock at a predetermined price (the strike price) before a specific date (the expiration date). If the stock price falls below the strike price,the put option becomes valuable,allowing Burry to profit from the decline. If the stock price stays above the strike price, the options expire worthless, and Burry loses the premium paid for them.

Why Nvidia and Palantir? Examining the Underlying concerns

The choice of Nvidia and Palantir as targets isn’t random. Both companies have experienced explosive growth, fueled by the artificial intelligence (AI) boom, leading to potentially inflated valuations.

Nvidia’s Valuation: Nvidia, a leader in graphics processing units (GPUs) essential for AI growth, has seen its stock price soar. Concerns center around:

* High P/E Ratio: Nvidia’s price-to-earnings ratio is exceptionally high, suggesting the stock may be overvalued.

* Competition: Increasing competition from AMD, Intel, and other players in the GPU market.

* AI Bubble Concerns: The possibility of an AI bubble bursting, leading to a correction in tech stocks.

* dependence on Data center Demand: A significant portion of Nvidia’s revenue relies on demand from data centers, which could be vulnerable to economic slowdowns.

Palantir’s Valuation: Palantir, a data analytics company specializing in government and commercial applications, has also experienced substantial gains. Key concerns include:

* Profitability Questions: While revenue is growing, Palantir’s path to consistent profitability remains a question mark.

* Stock Dilution: Past stock dilution has concerned investors.

* Concentration Risk: A significant portion of Palantir’s revenue comes from government contracts, creating concentration risk.

* Valuation Relative to Peers: palantir’s valuation is high compared to other data analytics companies.

Ancient Context: Burry’s Track Record and Contrarian Investing

Michael Burry is renowned for his contrarian investment style – identifying undervalued assets that others overlook or actively avoid. His success with predicting the 2008 housing crisis cemented his reputation.

* The 2008 Crisis: Burry was one of the first to recognize the unsustainable nature of the subprime mortgage market and profited immensely from the subsequent collapse.

* GameStop Short Squeeze: He was an early investor in GameStop (GME), recognizing its intrinsic value before the meme stock frenzy.

* Tesla Short: Burry famously shorted Tesla (TSLA) for a period, though this trade ultimately proved less successful.

This history suggests Burry isn’t afraid to take bold,unconventional positions based on his own research and analysis. He often focuses on identifying fundamental disconnects between a company’s stock price and its underlying value.

Potential scenarios and Risks: What Could Happen Next?

The outcome of Burry’s bet hinges on the future performance of Nvidia and Palantir. Here are a few potential scenarios:

* Scenario 1: Burry is Right (Bear Case): If Nvidia and Palantir’s stock prices fall below the strike prices of the put options, Burry will profit considerably. This would validate his concerns about overvaluation and potentially trigger a broader correction in the tech sector.

* Scenario 2: Stocks Remain Stable or Rise (Bull Case): If Nvidia and Pal