Michael Burry Stays Bullish On VEEV, Calls SNOW 'Overvalued' — And Revisits 'Big Short' Thesis That Best Stocks Fall By Half First

• Burry indicated that he would use a pullback in VEEV to build a larger position.
• He warned Snowflake could face longer-term risks from cyberattacks on data lakes as AGI and quantum computing advance.
• The investor said technical analysis helps him manage entry points while limiting the psychological biases that can come with owning a stock.

"The Big Short" investor Michael Burry has reiterated his bullish view on Veeva Systems but said he recently trimmed his position after a sharp rally carried shares to a key resistance level. In the same Substack chat session, he called Snowflake stock "very overvalued," offering a window into his latest thinking on individual names.

Burry disclosed a position in VEEV in April, making the stock one of its key picks in a software-rebound thesis. In May, he said “VEEV is still cheap,” arguing that the market had punished the life-sciences software company more severely than its underlying fundamentals warranted, and increased his exposure to the stock.

The position became one of the more significant holdings in his portfolio, alongside other beaten-down software names such as Adobe. 

A key part of Burry’s Veeva thesis is that the company’s core Vault platform is less vulnerable to competition and disruption than its CRM business. While Salesforce poses a competitive threat in CRM, Burry reportedly believes that the broader Veeva franchise, particularly its life-sciences-focused software, remains relatively well protected.

“A stock that was recently beaten down rising very fast to a level of significant resistance/overhead pressure could lead me to trim the position. It would not lead me to sell it outright. This happened with VEEV recently which also coincided with a much higher valuation,” Burry posted in his chat group.

VEEV stock has climbed sharply from lows in May, and rose 15% last Thursday after reporting upbeat earnings.

Burry Sees SNOW As Overvalued

On Snowflake, Burry said that not only is the stock overvalued but the company “also faces an existential threat if the ecosystem of data lakes is proven too vulnerable to cyberattack if/when AGI and quantum computing becomes available.”

“The headwinds would be lesser if companies develop their own AI departments and decide to keep more data in-house.” 

On Wednesday, Snowflake beat Wall Street estimates for quarterly ​results and raised its full-year product revenue forecast, signaling robust demand for its ‌cloud data platform and AI offerings and sending its shares surging over 20% in overnight trading.

‘The Big Short’ Book: Burry’s Investing Style  

Burry said he embraces sharp declines in stocks when they create an opportunity to build larger positions at cheaper prices. 

Referring to a comment by his longtime friend Jim Clarke of Brandywine in Michael Lewis’ 2010 book “The Big Short,” Burry recalled the idea that the “perfect Burry stock” is one that falls by half before eventually rising several times over. Burry said he has used technical analysis to improve on that approach, while also acknowledging the advantage of being able to buy more of a company when its stock falls.

Burry pointed to Molina Healthcare and Veeva as examples where lower prices allowed him to accumulate much larger positions. He also noted that being invested in a stock can deepen his understanding of the company, but can simultaneously introduce psychological biases. His approach, he said, is to “try to push the former up and keep the other down” — meaning he wants to increase his understanding of an investment while keeping emotional and psychological biases under control.

Overall, Burry’s Veeva trade appears to be a bet on a re-rating of high-quality SaaS stocks after the AI-driven selloff. 

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