Burry Takes Aim at Caterpillar with New Short Position

Caterpillar (CAT) has caught the attention of Michael Burry, the high-profile investor who has disclosed a new short position against the stock. This move comes alongside his existing short positions in several large technology stocks, highlighting his cautious stance on equities.

Burry's short position against CAT challenges the company's narrative, which is built around strong infrastructure demand and data-center power projects. The bear side now has a high-profile voice stressing tariff and pricing risks, while the bull case still relies on infrastructure, mining, and services growth.

Caterpillar's record backlog growth, driven by global infrastructure demand, positions the company for above-trend sales growth in late 2025 and into 2026. However, Burry's short position questions whether this backlog can offset flagged risks such as tariffs, aggressive discounting, and geopolitical friction that could weigh on Caterpillar margins.