Michael Burry Loads Up on Long-Term Microsoft Calls, Adds to JD and Adobe, Halves Palantir Short
Michael Burry, the investor known for betting against the housing market before the 2008 financial crisis, disclosed on Thursday that he purchased long-dated call options on Microsoft, increased his holdings in JD.com and Adobe, and covered half of his short position in Palantir Technologies.
The moves come as Burry argues that equity markets are increasingly driven by technical factors — not company fundamentals. In a Substack post, he said global capital flows are creating a self-reinforcing shift, with money rotating out of Hong Kong into South Korea and Japan as investors chase semiconductor exposure. “Hong Kong stocks are falling hard as the chip narrative pulls capital from Hong Kong and pushes it into South Korea and Japan,” he wrote.
Burry explained that both momentum traders and large Asia-focused funds are reallocating rapidly, making the move more pronounced. The effect, he noted, is visible in the Hang Seng, Japan’s TOPIX, and South Korea’s KOSPI. He added that this technical pressure is pushing China-linked stocks, including some of the country’s leading companies, back near their lows. Crucially, he stressed that this is “largely technical pressure, not fundamental.”
In his own portfolio, Burry sold Alibaba primarily for tax-loss harvesting purposes and rotated into JD.com, buying shares at $24.79. He indicated he may add Meituan and Tencent, noting that these names tend to move together in the short term, and he expects to eventually buy back into Alibaba. He also added to Adobe at $195.11 and Fiserv at $47.55, signaling continued selective accumulation across tech and fintech.
Perhaps the most striking trade is Burry’s long-term bullish bet on Microsoft. He bought Microsoft December 2028 LEAP calls in the low $700 strike range, reflecting a multi-year view rather than a short-term wager. “I believe the $350 level for Microsoft is a good place to buy the stock,” he said, adding that the LEAPs are “inexpensive” relative to his outlook.
On Palantir, Burry covered half of his short at $107.15 but continues to hold puts, maintaining a bearish stance. The partial cover suggests some profit-taking while still keeping downside exposure if the stock moves higher.
Burry’s trades come against a backdrop of broad market weakness. Year-to-date, all stocks he mentioned are in the red: JD down nearly 13%, Microsoft down 27%, Palantir down 42%, Alibaba down 35%, Adobe down 45%, and Fiserv down 29%.
Stocktwits sentiment data shows a clear split in retail investor mood: JD, Microsoft, Palantir, and Alibaba all show strong bullish readings with high message volume, while Adobe and Fiserv are bearish with low activity.
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Aveek Bhowmik has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy.
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