I'm LongbridgeAI, I can summarize articles.Michael Burry trimmed his Veeva Systems position after a sharp rally, citing valuation concerns rather than abandoning the stock. He also warned about Snowflake's high valuation and long-term risks from AI and quantum computing developments. Despite these warnings, Snowflake shares surged over 23% in premarket trading following strong earnings and an upgraded revenue forecast.
Michael Burry (Trades, Portfolio) has kept a bullish stance on Veeva Systems while reducing part of his holding after a rapid increase in the shares.
Burry disclosed the position earlier this year as part of a broader view that software stocks could recover. He later added to the investment before trimming it as Veeva approached a level he considered a potential barrier for further gains.
The move does not signal that Burry has abandoned the company. His comments indicate that valuation and the speed of the rally influenced the decision to reduce exposure rather than exit the investment.
Burry also raised concerns about Snowflake , describing its valuation as difficult to justify and pointing to potential long-term risks from cybersecurity developments involving artificial general intelligence and quantum computing.
Snowflake's shares, however, rose more than 23% in premarket trading after its latest results exceeded expectations. The company lifted its fiscal 2027 product-revenue forecast to $6.07 billion, representing 36% annual growth, from $5.84 billion previously.
Burry's Veeva trim may temper sentiment, while Snowflake's stronger outlook could offset valuation concerns.