<\/p>\n
When Michael Burry makes a move, people pay attention. Not because he is always right, but because he tends to act before the crowd catches on. And what he just did in the software sector is exactly the kind of contrarian bet his reputation was built on.<\/p>\n
The stock he bought is one of the biggest companies in the world. And the reason he bought it is more specific and more interesting than a simple bullish call on tech.<\/p>\n
What Burry disclosed about Microsoft, and why<\/p>\n
In a Substack post published April 23, Burry revealed he had initiated a new long position in Microsoft. He also increased holdings in MSCI, PayPal, and Adobe, positions he had only recently begun building.<\/p>\n
The timing is deliberate. Software stocks had sold off sharply on April 23 following disappointing earnings guidance from IBM and ServiceNow, which investors interpreted as a warning about AI disrupting enterprise software demand. Burry saw that reaction as an overreaction.<\/p>\n
Fund manager buys and sells<\/p>\n
Cathie Wood buys $2.5 million of tumbling megacap stockWarren Buffett dumped 77% of Amazon to buy surging media stockCathie Wood buys $11 million of tumbling megacap tech stock<\/p>\n
“Software stocks sold off hard today on some earnings news from IBM and ServiceNow that investors took as indicative of an AI threat,” he wrote in the Substack post, CNBC noted. He said he sees an opportunity in “bombed out software and payment stocks” and confirmed he did not sell any of his software holdings during the selloff.<\/p>\n
He also said he has “forensically” analysed Microsoft and believes it has the competitive moat to thrive despite AI-related concerns, Motley Fool confirmed.<\/p>\n
Why Microsoft stock caught Burry’s eye<\/p>\n
Microsoft has had a rough stretch. The stock is down roughly 25% from its July 2025 record high and 13% year-to-date, according to 24\/7 Wall St. It recovered about 18% from recent lows in the weeks before Burry’s post, but remains well below its peak.<\/p>\n
That kind of price action is exactly what attracts a contrarian investor. Burry tends to buy quality businesses when sentiment has driven prices lower than fundamentals justify. Microsoft fits that description cleanly right now.<\/p>\n
The business itself is not broken. Microsoft’s commercial cloud segment, which includes Azure, Office 365, and Dynamics, generates subscription-based recurring revenue with margins that most tech peers cannot match. Azure remains one of only two truly hyperscale cloud platforms globally. The company produces tens of billions in free cash flow annually, enough to fund buybacks and dividends without strain.<\/p>\n
At a forward price-to-earnings multiple of roughly 26x, Microsoft is trading well below its five-year median P\/E of 34x, according to GuruFocus. Burry is not buying a speculative AI trade. He is buying a cash-flow machine at a discount to its own history.<\/p>\n
Michael Burry just took a long position in Mega Tech stock.<\/p>\n
Avelar/Getty Images<\/p>\n
Burry is not advising investors to buy tech broadly<\/p>\n
Burry’s move is not a simple buy-everything-tech call. At the same time he was adding software names, he purchased put options on the Invesco QQQ Trust ETF, Nvidia, and the iShares Semiconductor ETF, GuruFocus reported.<\/p>\n
That combination says a great deal about where Burry thinks the market is mispriced. He is leaning into software names he believes have been unfairly punished, while simultaneously protecting against a potential pullback in the most crowded parts of the AI trade: semiconductors and the broader Nasdaq.<\/p>\n
In plain terms, Burry is not saying buy tech broadly. He is saying buy the right tech and be careful about the rest.<\/p>\n
Key details from Burry’s April 23 portfolio moves:New long position initiated in Microsoft, disclosed via Substack on April 23, 2026, CNBC reportedIncreased positions in MSCI, PayPal, and Adobe alongside the Microsoft purchase, CNBC notedPut options purchased on QQQ, Nvidia, and the iShares Semiconductor ETF, according to GuruFocusMicrosoft is down roughly 25% from its July 2025 record high and 13% year-to-date, 24\/7 Wall St indicatedMicrosoft forward P\/E: Approximately 26x, versus a five-year median of 34x, GuruFocus notedPayPal roughly 37% below its peak; Adobe down about 54% from its high, according to CNBCTD Cowen maintained buy rating on Microsoft with $540 price target, Invezz reportedMicrosoft earnings scheduled for April 29, Motley Fool notedWhat the IBM and ServiceNow reaction tells us<\/p>\n
The immediate trigger for Burry’s post was the April 23 software selloff. IBM and ServiceNow both delivered earnings guidance that disappointed investors who feared AI would erode enterprise software demand. The market took those signals and sold software stocks broadly.<\/p>\n
Burry’s counter-argument is that not all software companies face the same AI risk. He did forensic work on Microsoft specifically, and concluded the sell-off created a buying opportunity rather than a warning signal. His reasoning is that Microsoft’s AI strategy, particularly through Copilot and Azure, positions it as a beneficiary of the AI era, rather than a casualty.<\/p>\n
That distinction matters because it tells investors Burry is not buying Microsoft despite AI concerns. He is buying it because he thinks the market has confused one company’s problem with an entire sector’s problem.<\/p>\n
What investors should take from Burry’s Microsoft move<\/p>\n
Burry’s trade is not a recommendation to copy blindly. He did not disclose position size, and his track record includes both spectacular wins and notable misses. Following any single investor without doing independent work is how people get burned.<\/p>\n
But the structure of his move is worth studying. He is buying quality software assets at discounted valuations while hedging against the most crowded AI infrastructure names. That combination reflects a specific view: The market has been too generous with chip stocks and too harsh with software.<\/p>\n
With Microsoft reporting earnings on April 29, the next data point arrives quickly. If results and guidance hold up, Burry’s thesis gets its first real test. <\/p>\n
If software demand is more resilient than the IBM and ServiceNow reactions suggested, the “bombed-out” opportunity he sees in Microsoft could close faster than the broader market expects.<\/p>\n
Related: \u2018Big Short\u2019 Michael Burry sends signal on Nvidia stock<\/p>\n
#Michael #Burry #buys #beatendown #mega #tech #stock<\/p>\n","protected":false},"excerpt":{"rendered":"
When Michael Burry makes a move, people pay attention. Not because he is always right,…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[259],"tags":[10015,7887,3419,10016,945,91,317],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/4814"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4814"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/4814\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}