Michael Burry has taken on a new role at Microsoft, increasing the names of beaten-down software while increasing downside protection in the broader market. In a Substack post published late Thursday, the “Big Short” investor said he also increased his holdings in MSCI, PayPal, and Adobe, which he only recently started building positions in. Barry believes he is leaning towards oversold opportunities in software and financial technology payment providers, even as the sector is reeling from concerns about valuation compression and potential disruption from artificial intelligence. Microsoft stock is down about 25% from its all-time high in July 2025. PayPal is down about 37% from its all-time high, and Adobe is down about 54% from its high. “Software stocks sold off heavily today following some earnings news from IBM and ServiceNow that investors took as indicative of the threat of AI,” Barry said in a post Thursday. “I didn’t sell software stocks.” At the same time, Barry hinted at growing anxiety across markets following a relentless rally to record highs, despite continued geopolitical tensions. He said he has expanded his bearish positions and that put options now account for about 5% of his portfolio. “This is one of those historic gains that has never happened before in the U.S. stock market,” he said. “I’ve never seen a rally so steep, so relentless, to all-time highs. These are fast-paced times. So, in ways I can’t imagine, I added more puts… leaning into bombed software and payments stocks.”
