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Home/Markets & Investing/MICHAEL BURRY

Michael Burry bets on software recovery as private credit pressures fade

LV

Lyra Vane

Michael Burry · Apr 17, 2026

A 3.5% position in PayPal at $49 per share marks the latest entry in Michael Burry's bet that the software sector's technical selloff has bottomed. The Scion Asset Management founder is wagering that the recent decline in software stocks was driven by market mechanics rather than business fundamentals.

Related Brief3d ago
equity investing

Michael Burry bets on a software industry bottom

Adobe shares fell 31.31% from $349.99 on December 31 to $240.40 on April 14. Autodesk shares fell 23.23% from $296.01 on December 31 to $227.25 on April 14. Veeva shares fell 27.56% from $203.23 on December 31 to $161.71 on April 14. These losses are the result of a severe downturn in the software industry, driven by investor fear that AI agents, introduced by Anthropic in February, would render software services obsolete. Michael Burry has taken three new long positions in Adobe, Autodesk, and Veeva. He is wagering on an upward correction as these stocks approach a bottom.

Burry describes a reflexive positive feedback loop where falling equity prices caused stress in bank debt tied to software companies, which in turn pushed prices lower. This pressure was compounded by retail investors pulling money from private credit funds, which held loans tied to these firms.

Related Brief14h ago
market strategy

Buffett's Cash Hoard and Burry's AI Critique Reveal a Market Setup for Long-Term Winners

Buffett's $373 billion cash hoard is positioned to benefit from the next major market downturn, Paul Dietrich says. The Berkshire Hathaway CEO grew the company's liquid assets to a record level as of December 31, a move that mirrors his 2008-2009 strategy of deploying over $21 billion when credit markets froze. The S&P 500 closed at an all-time high of about 7,023 points on Wednesday, fueled by a sharp rebound in tech stocks. Michael Burry's critique of AI valuations has found an ally in Dietrich, who calls the situation a 'scandal' and agrees with Burry's analysis of inflated earnings and excessive investments in the sector. Dietrich recommends indirect exposure to AI through utilities, which he views as more stable than direct tech investments. He favors domestic energy producers not operating in the Gulf and energy infrastructure, while cautioning against fuel-sensitive industries like airlines and trucking. Dietrich also sees 12 to 24 months of disruption ahead in energy markets, food supply chains, and global growth.

To isolate the recovery, Burry selected names that do not rely on private credit markets, including PayPal, Adobe, Autodesk, and Veeva Systems. He also added positions in Salesforce and MSCI.

Related Brief1d ago
short selling

Michael Burry Bets Palantir Will Fall Below $50 — Here’s What That Says About AI Hype

Palantir’s current stock price is more than 60% above Michael Burry’s $50 fair value estimate. The stock trades at nearly 100 times its projected 2024 earnings of $1.30 per share. Analysts project Palantir’s earnings will rise to $1.80 per share in 2025 and $2.50 in 2028. Even on projected earnings, Palantir trades at more than 50 times its expected 2026 earnings. The S&P 500 trades at a forward P/E of 21, Microsoft at 20, and Alphabet at 25. Palantir’s valuation is more than double that of its most richly valued peers despite similar or slower growth prospects. Burry argues that hype, not fundamentals, is driving Palantir’s stock price. There is no significant barrier to entry in Palantir’s decision-intelligence market, increasing competitive risk from firms like Microsoft and Alphabet. Investor enthusiasm for AI is already showing signs of cooling, undermining support for premium valuations. Retail investors face outsized risk from volatility and prolonged mispricing that institutional traders like Burry can endure. For most individual investors, choosing not to invest in Palantir may be the most rational financial decision.

PayPal rose 2.5% on Friday, bolstered by Burry's disclosure and speculation that SG Americas may be acting as a swap broker for activist investors targeting the company. The stock remains 14.35% down year-to-date, having crashed approximately 20% in a single session in early February.

Related Brief3d ago
stock market

Michael Burry maintains short position on Palantir despite Trump endorsement

Palantir shares have fallen almost 40 percent since investor Michael Burry first announced a short position against the company in early November 2025. President Donald Trump recently praised Palantir's 'great warfighting capabilities and equipment' in a Truth Social post, causing shares to jump briefly. Burry, founder of Scion Capital, stated in a blog post that he is sticking with his bet that the company's value will decline over the long term and has no plans to close the position.

Burry maintains that the technical pressures brought on by private credit and software debt issues are not large enough to affect these stocks for much longer.

Related Brief3d ago
contrarian investing

Michael Burry’s software stock bets expose the gap between AI fears and valuation reality

Three software stocks are down more than 20% this year not because they broke, but because investors panicked. Michael Burry sees that drop as a mispricing. He’s taken new positions in Autodesk (ADSK) and Veeva Systems (VEEV), and added to his existing stake in Adobe (ADBE)—all names battered by fears that artificial intelligence will erode their business models. The market treated the entire software sector as vulnerable, punishing high-quality companies alongside weaker peers. Burry argues the credit-side risks aren’t significant enough to sustain further declines. His view: the selloff has been overdone, driven by irrational anxiety over AI disruption rather than fundamentals. That disconnect has pushed valuations low enough to offer attractive entry points. Analysts now estimate upside potential for each stock exceeding 30%.

Michael Burry

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