Michael Burry bets on software stocks as AI fears trigger bear market
RS
Reese St. James
Michael Burry · Apr 16, 2026
Source: DojiDoji Data Terminal
The iShares Expanded Tech-Software Sector ETF has slumped 28% from its September peak, pushing the software sector into a bear market. Michael Burry believes this decline was driven by a 'reflexive positive feedback loop' between falling equity prices and stress in bank debt tied to software companies.
Burry stated in a Substack post that he does not believe technical pressures brought on by private credit and software debt issues will affect these stocks for much longer. He opened a 3.5% position in PayPal and planned to add positions in Salesforce and MSCI. He maintains holdings in Fiserv, Adobe, Autodesk, and Veeva Systems.
Burry noted that while large language models may seriously affect several companies based on their business models, he has analyzed the companies in selected for investment potential. He specified that none of the companies in his current holdings rely on private credit markets.
Michael BurryWarren Buffett
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