Burry’s trades come just as Big Tech delivered a robust set of quarterly earnings.
- Burry first disclosed a position in Microsoft in April and recently unwound it, according to a trading update on his Substack page.
- Microsoft and Palantir reported strong quarterly earnings recently.
- The retail sentiment was ‘neutral’ for ORCL, and ‘extremely bullish’ for PLTR and MSFT.
“Big Short” investor Michael Burry on Tuesday said he sold off Microsoft shares, closed his short position in Oracle stock, and partially reduced his bearish bet in Palantir stock.
Burry’s trades come just as Big Tech delivered a robust set of quarterly earnings. Microsoft, Amazon and Alphabet beat revenue and profit expectations, while the latter two also raised their capital expenditure forecasts for the year.
Palantir, too, reported blowout results, which sent its stock up nearly 30% on Tuesday. Oracle has yet to announce the date for its quarterly results.
Burry Takes Profits As Big Tech Earnings Surprise
Burry first disclosed a position in Microsoft in April and recently unwound it, according to a trading update on his Substack page.
“That position benefitted from some lucky timing, and I cannot say my enthusiasm for Microsoft’s earnings report rose to the same level as that of the market,” Burry wrote.
The Windows-maker issued a remarkably strong quarterly report last week. Revenue increased 19% in the company’s fiscal fourth quarter, with Azure Cloud and other services’ sales climbing 43% – both were above Wall Street’s projections at the time.
The stock has soared over 25% in the four sessions since Microsoft issued the results.
Oracle Shorts Closed, But Burry Leaves The Door Open
On the Oracle trade, Burry said, “These were the January 2027 low 100s strikes, and I decided not to roll them. The profit there was substantial, and so I left it at that. Should volatility come down, I may re-enter Oracle puts.”
ORCL stock declined 11% in July, and got a lift this month.
Palantir Remains Burry’s Biggest Bearish Conviction
Burry has been one of the most vocal critics of Palantir, routinely flagging concerns with the company’s accounting and spending. He sold or let expire his January put options on PLTR, but kept his direct short position in stock.
Palantir’s second-quarter sales nearly doubled to $1.94 billion, with U.S. commercial sales surging 149% and U.S. government sales rising 90%, according to results issued on Monday.
The top and bottom lines comfortably beat expectations of $1.81 billion in revenue and EPS of $0.35. The company also raised its 2026 revenue forecast to a range of $8.15 billion to $8.16 billion, up from a prior top-end range of around $7.66 billion.
PLTR, MSFT, ORCL Valuations, Retail View
Of the three stocks, Palantir is the most richly valued, trading at 86.2 times its forward earnings. Microsoft trades at 25 times and Oracle at 18.1 times.
On Stocktwits, the retail sentiment was ‘neutral’ for ORCL, and ‘extremely bullish’ for PLTR and MSFT. Some traders asserted that PLTR and MSFT were poised to cool off in the coming days.
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