Burry calls Birkenstock a full position at 30% discount to fair value
Michael Burry increased his stake in Birkenstock (NYSE:BIRK) at a 30% discount to its fair value, according to a Substack post. The company reported Q3 2026 adjusted EPS of EUR 0.74, up 19% YoY, and raised its full-year adjusted EBITDA guidance to at least EUR 710 million. Despite this, the stock fell 9.4% due to a $1 billion equity offering and a $500 million share buyback. Burry's investment thesis is based on the brand's durability and deep-value entry price.
How this was made
The 30-second read
Why it matters
Burry's stake increase could serve as a catalyst for short covering and attract value‑oriented investors, but dilution and recent earnings miss temper expectations.
Market read
Burry's public positioning may influence trading activity in BIRK and reflect broader sentiment on value versus growth stocks.
What to watch
Potential impact of the $1B follow‑on offering on future earnings per share.
Background
Article discusses Michael Burry's recent investment activity in Birkenstock and his broader portfolio stance.
Ticker impact
Michael Burry increased his Birkenstock stake, calling it a full position at a 30% discount to fair value.
Possible short-cover rally and modest upside toward fair value.
Burry's reputation and the discount provide a catalyst, but the recent earnings miss and dilution limit upside.
Market effects
Highlights continued interest in consumer discretionary value plays versus high‑multiple tech stocks.
Primarily affects US small‑cap investors tracking Burry's moves.
Limited to investors following high‑profile activist investors.
Counterpoint
The recent earnings miss and dilution may outweigh the discount, keeping downside risk.
Key entities
- InvestorMichael Burry
Founder of Scion Asset Management, known for value bets.
- CompanyBirkenstock Holding
Consumer footwear company listed on NYSE under BIRK.
