David Einhorn Says Tech Stocks Are in an ‘Enormous’ Bubble
- Cites extraordinary valuations, IPO boom as signs of bubble
- Says he has added fresh ‘bubble basket’ of short bets
David Einhorn has long held what he calls a bubble basket of short wagers which have included tech giants such as Amazon.com Inc. and Netflix Inc.
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Investor David Einhorn said technology stocks are in an “enormous” bubble and he has added a set of short wagers to profit from it.
“The question at hand is where are we in the psychology of this bubble?” the head of hedge fund Greenlight Capital wrote in an Oct. 27 note, seen by Bloomberg. “Our working hypothesis, which might be disproven, is that September 2, 2020 was the top and the bubble has already popped. If so, investor sentiment is in the process of shifting from greed to complacency.”