Tech giants are reporting massive profits, but a warning from Michael Burry is raising serious doubts about just how real those numbers are.

The market’s faith in Big Tech has been fueled by soaring earnings and relentless spending on artificial intelligence. But investor Michael Burry, famous for calling the 2008 housing collapse, is sounding the alarm. This time, it is not about loans or housing. It is about accounting. Advertisement

In a recent social media post, Burry pointed to a subtle but powerful move by companies like Meta and Alphabet. By lengthening the depreciation schedules for servers, chips, and other AI infrastructure, these companies are lowering the non-cash expenses that weigh on net income. That means higher profits on paper, without any real increase in cash flow.

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