Michael Burry warns Wall Street ‘it feels like’ dot-com bubble peak

Nasdaq and S&P 500 performance in the dot-com bubble.

Burry has listed several fundamental reasons why Wall Street investors should remain cautious of a potential dot-com-like peak. For instance, the Nasdaq rose 84% during its dot-com peak and is up 31% over the past 12 months. Additionally, he noted that the tech sector accounted for 33% of the S&P 500 at the dot-com bubble, compared with 32% today.

Meanwhile, the Cyclically Adjusted Price-to-Earnings (CAPE) ratio, which measures how expensive the stock market is relative to corporate earnings, hit 40x at the dot-com peak, and it is at 40x again in 2026. Burry highlighted that margin debt was at record highs before the dot-com crash and is at record highs now.

During the dot-com bubble, Hedge funds held 31% of their portfolios, and in 2026, 33% was concentrated entirely in a handful of big tech names. Furthermore, he noted that upcoming Initial public offerings (IPOs) from Space Exploration Technologies Corp., Anthropic PBC, and Open Artificial Intelligence Inc. could collectively raise as much as, or more than, the combined proceeds of the roughly 300 internet and technology, media, and telecommunications IPOs of 2000.