Big Short Investor Steve Eisman Sold Google Because the Entire Market Is Now ‘One Trade’
Steve Eisman has sold his long-held Google position to cut his artificial intelligence (AI) exposure. The investor who shorted the 2008 housing market now holds cash, warning the whole market has become one AI bet.
He has not bought a replacement. Eisman says defensive stocks will not work, because investors either want AI or they want nothing.
Eisman Sold Google Near Its Record High
Speaking on CNBC's Squawk Box, the former Neuberger Berman portfolio manager called the exit deliberate. He built his reputation shorting subprime mortgages at FrontPoint Partners.
"I sold my Google a couple of months ago. I've owned Google. I can't even tell you how long I've owned Google, but I felt I wanted to reduce my exposure to AI," Eisman said.
The timing looks good so far. Alphabet peaked at $408.61 on May 18, its record high. The stock closed at $319.74 on July 24. That is a drop of roughly 20% in about two months.
One session did much of the damage. Alphabet fell 7.1% on July 23, the day after Q2 earnings. The company had just raised 2026 capital spending guidance to a range of $195 billion to $205 billion.
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