Investor Michael Burry shorted Caterpillar stock at $1,060.98 per share on Tuesday, July 1, 2026. Burry stated that he had not previously shorted Caterpillar stock.

Burry indicated that Caterpillar's valuation was a factor in his decision. He said, "Caterpillar jumped out at me. I have never shorted Caterpillar. It has always done great for me on the long side in the past." He also noted that Caterpillar's price-to-sales ratio was at its highest point in three decades.

Following Burry's disclosure, Caterpillar shares closed down nearly 7% on Wednesday. The stock continued to fall by as much as 4% on Thursday, reaching approximately $949 per share. Caterpillar shares had gained 86% in the first half of 2026 and climbed about 172% over the 12 months prior to Burry's announcement. In the year-to-date period before his disclosure, the stock had risen more than 77%.

Sergey Glinyanov, a senior analyst at Freedom Broker who covers Caterpillar, stated that Burry's short position was not likely to affect Caterpillar stock. Glinyanov also commented that Caterpillar's share price increase was driven by a fundamental shift in infrastructure spending rather than artificial intelligence speculation. He said, "A structural theme is emerging." Glinyanov reported that Caterpillar's dealer inventories are improving, and retail demand remains strong. He added that Freedom Broker's price target for Caterpillar is $910. Glinyanov said, "Should we observe deterioration in hyperscalers' fundamentals—particularly cash flow generation or debt burden—multiples could face a meaningful pullback."

Burry stated in May that the market was "feeling like the last months of the 1999-2000 bubble." He also stated that the Philadelphia Semiconductor Index was trading approximately 65% above its 200-day moving average. He said, "The proximate cause of today's rally is big spending announced out of Korea. Well, I see that as the beginning of the end. It is only a matter of time now." Caterpillar reported first-quarter sales of $17.4 billion, which represented a 22% increase year-over-year.