Michael Burry initiated a new position in Microsoft , adding to beaten-down software names even as he ramps up downside protection in the broader market. In a Substack post published late Thursday, the investor of “Big Short” fame said he also increased holdings in MSCI , PayPal and Adobe , positions he only recently began building. Burry is leaning into what he sees as oversold opportunities in software and financial technology payments providers, even as the sector reels from concerns over valuation compression and the potential disruption from artificial intelligence. Microsoft shares are down about 25% from their record high in July 2025. PayPal is roughly 37% below its peak, while Adobe has plunged about 54% from its high. “Software stocks sold off hard today on some earnings news from IBM and ServiceNow that investors took as indicative of an AI threat,” Burry said in the Thursday post. “I did not sell any software stocks.” At the same time, Burry signaled growing unease with the broader market after a relentless rally to record highs despite persistent geopolitical tensions. He said he is expanding his bearish positioning, with put options now making up about 5% of his portfolio. “The picture is one of an historic rally, something that has never happened in the U.S. stock market,” he said. “Never have we seen an ascent this steep, this unrelenting, and to all-time highs. Heady times. So, though a needle top I cannot imagine, I added more puts … as I lean into bombed out software and payment stocks.”
