Michael Burry Just Went Long on Microsoft.
Billionaire investor Michael Burry recently disclosed a long position in Microsoft, citing the company’s high-margin software and cloud business with fortress-like fundamentals.
Burry, best known for his bet against the housing market ahead financial crisis (immortalized in The Big Short)
And recently betting big against
#NVIDIA (NASDAQ:NVDA)
And Palantir Technologies (NYSE:PLTR)
Rarely makes moves without a thesis.
Microsoft (MSFT) is down 13% year-to-date and trading 24% below its 52-week high, while generating recurring revenue from Azure and Office 365 with durable cash flow margins that exceed most tech peers.
So here’s the question investors are suddenly asking: when a high-profile contrarian like Michael Burry steps in, is that a signal or just noise in a crowded market.
According to a recent Substack post, the billionaire investor disclosed that he has gone long on Microsoft.
He did not specify the size of the position, which is typical for his style -- light on fanfare, heavy on implication.
While he didn’t lay out a detailed valuation model this time, his broader track record suggests a few consistent themes: he likes cash-generative businesses, he leans into fear-driven selloffs, and he pays attention when quality names get repriced.
#Microsoft checks those boxes more cleanly than most.
Only weeks ago, Microsoft was trading at a decade-low multiple as investors questioned
#AI spending returns and broader enterprise IT budgets. Since then, buyers have stepped back in, suggesting that the worst of the panic selling may have already cleared.
That doesn’t automatically make it cheap, but it does reset expectations.
Surprisingly, this isn’t a stretch for Burry’s style of investing. At its core, Microsoft is still a high-margin software and cloud business with durable cash flow.
According to its latest earnings report, the company continues to generate strong operating margins driven by its Azure cloud platform and Office productivity suite.
$MSFT