TLDR
- Michael Burry bought December 2028 LEAP call options on Microsoft (MSFT) with a strike price in the low $700s
- Microsoft touched a 52-week low of $349.20 on June 25, down over 23% year to date
- Burry called the $350 level “a good place to buy,” framing the selloff as “technical pressure, not fundamental”
- MSFT rose 5.2% on June 26 following news of Burry’s position, as money rotated from AI chip stocks into software
- Wall Street holds a strong buy consensus on MSFT with an average price target of $562.10, roughly 51% above recent levels
Michael Burry, the investor famous for shorting the housing market before the 2008 crash, has quietly placed a bullish, multi-year bet on Microsoft (MSFT).
On June 25, Burry disclosed he had bought December 2028 LEAP call options on the stock, with a strike price in the low $700s. The same day, Microsoft touched a 52-week low of $349.20. It had closed at $365.46 the day prior.
For those options to pay off, Microsoft would need to nearly double from that level and clear its all-time record close of $538.66 by a wide margin — all by December 2028.
This is not a bounce trade. It’s a two-and-a-half year wager that Microsoft prints a price it has never seen before.
Burry’s reasoning was direct. He wrote that “the $350 level for Microsoft is a good place to buy,” describing the longer-dated options as cheap relative to his outlook, per TipRanks. He framed the broader software selloff as “technical pressure, not fundamental” — forced selling, not broken businesses.
He had already gone long Microsoft in April when the stock was also under pressure. The June trade escalates that position into a much larger options structure.
Why Microsoft Sold Off
Microsoft has lost more than $1 trillion in market cap since its October 2025 peak, sliding from a record close of $538.66 to around $365. The stock is down roughly 23% year to date.
The drop is tied largely to its spending plans. Microsoft is on track to spend around $190 billion on capital projects this fiscal year, much of it going into AI data centers and the memory chips needed to run them. A global memory shortage has pushed that hardware cost higher.
Investors pulled back when they did the math on those numbers. The retreat was also part of a wider exit from expensive AI-linked stocks through a volatile 2026 market.
MSFT Jumps After Burry Disclosure
Microsoft opened 4.09% higher on June 26, the day after Burry’s disclosure surfaced. It ended the session up 5.2%, even as the S&P 500 traded flat and the Nasdaq finished down 0.7%.
The move came as investors appeared to be rotating out of AI chip stocks and into software names. There was no company-specific news that day.
Burry also made several other moves on June 25. He covered half his Palantir (PLTR) short at $107.15, added to positions in JD.com (JD) and Adobe (ADBE), and sold his Alibaba (BABA) stake for tax reasons, per Stocktwits.
His 2026 scorecard is mixed. His Palantir short has worked, with PLTR down more than 33% this year. His Nvidia (NVDA) short has moved back and forth without a clear result. His Lululemon (LULU) long is down about 45%, per Finbold.
On the Microsoft call specifically, Wall Street broadly agrees with the bullish direction. The stock carries a strong buy consensus with an average analyst price target of $562.10, per TipRanks. Stifel’s Brad Reback is a hold outlier, with a $400 target.
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