• Burry disclosed the MOH position in a post on X and through Scion's latest quarterly filing.
• Molina recently cut its 2025 earnings outlook due to higher medical costs.
• The insurer priced $850 million of 6.500% senior notes due 2031 on Monday.

Michael Burry has expanded his recent series of market calls to include a new position in Molina Healthcare, marking another shift in strategy as the“Big Short” investor continues to flag what he sees as bubble-like conditions across artificial intelligence and technology markets.

Burry disclosed the stance in a post on X, writing,“Long MOH stock and Long PLTR puts, like peanut butter and bananas.” The comment follows Scion Asset Management's quarterly filing earlier this month, showing new bullish positions in Pfizer, Halliburton, and Lululemon Athletica, alongside bets against Nvidia and Palantir. Burry also made an unexpected move into healthcare in the third quarter by initiating a new position in Molina, which provides managed healthcare services to low-income individuals and families through Medicaid, Medicare, and state insurance marketplaces. Scion purchased 125,000 shares of the company, which currently has a market cap of over $7 billion.

Molina Healthcare's stock slipped 0.6% at the close before rebounding in after-hours trade and jumping over 5% overnight, according to Yahoo Finance. The stock has slumped about 53% this year, on track for its worst annual performance since 2008.

Broader Market Warnings

Burry has returned to social media in recent weeks with a series of warnings about surging AI and cloud spending. He has shared charts comparing current market behavior with past peaks, including the dot-com era, the 2007 housing cycle, and the 2014 shale boom, each followed by sharp reversals. His posts have also pointed to rising TMT capital expenditure and the circular deals occurring in the AI industry.

He has also warned that major technology companies such as Meta, Alphabet, Oracle, Microsoft, and Amazon are using higher useful lives for networking and computing assets, and said that Meta and Oracle may be overstating earnings by more than 20% each by 2028 due to this.

Molina's Recent Guidance Revision

Molina lowered its 2025 guidance in October, reducing its non-GAAP EPS outlook to $14 from a prior“no less than $19,” citing higher medical cost trends across all segments. The insurer's third-quarter medical cost ratio rose to 92.6% from 89.2% a year earlier, with non-GAAP net income declining to $1.84 per share from $6.01 in the prior period, prompting several analysts to lower price targets on the stock.

On Monday, Molina priced $850 million of 6.500% senior notes due 2031 in a private offering, saying it expects to use the proceeds for general corporate purposes, including repayment of delayed-draw term loans.

Stocktwits Traders Flag 'Obligatory' Watch 

On Stocktwits, retail sentiment for Molina was 'bearish' amid 'low' message volume.

Traders said Molina had become an“obligatory” name to watch, with others pointing to its $143 overnight trading level, while another noted that the stock jumped sharply moments after Burry's post circulated.

Currently, out of 17 analysts covering MOH on Wall Street, only three hold a 'Buy' rating, while 12 recommend 'Hold' and two have a 'Strong Sell' rating for the stock that trades at a 26% discount to the average price target of $172.53, according to Koyfin data. Notably, short interest in Molina has also surged from 1.8% at the start of the year to 6.1% at the end of last week.

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