Famed investor Michael Burry continues to buy beaten down software stocks, this time adding Microsoft (MSFT) to his portfolio.
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Burry, whose bet against the subprime mortgage market was chronicled in the book “The Big Short,” disclosed the new Microsoft position in his substack newsletter. While Burry didn’t disclose the size of his position, he wrote that he has “gone long on Microsoft.”
In recent weeks, Burry has written extensively about the software sector and his view that fears of disruptions from artificial intelligence (AI) are overblown. Burry says that software stocks, as a group, have been unfairly punished and are now trading at fair valuations.
Michael Burry’s Other Software Bets
Microsoft is the latest in a series of software stocks that Burry has purchased over the past few weeks. Other names he has scooped up and added to his portfolio include Adobe (ADBE), Autodesk (ADSK), and Veeva Systems (VEEV), which he has singled out for being undervalued.
Burry’s substack newsletter is called “Cassandra Unchained.” In it, the investor and former hedge fund manager often takes contrarian views and report trades that go against the conventional wisdom on Wall Street. Most institutions are selling software stocks for fear that AI will upend their business models.
Is MSFT Stock a Buy?
Microsoft’s stock has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 34 Buy and three Hold recommendations issued in the last three months. The average MSFT price target of $581.61 implies 56% upside from current levels.
