Microsoft Shares Fall 20%, Burry Buys 2028 LEAP Calls at $700 Strike
MSFT•Michael Burry bought Microsoft December 2028 LEAP calls at low $700 strikes, signaling a long-term bullish stance and covering half his Palantir short. Microsoft shares have fallen over 20% this year on AI spending and cloud margin concerns as Burry sold Alibaba for tax-loss and added JD.com, Adobe and Fiserv.
1. Burry Targets Long-Term Upside
Michael Burry purchased Microsoft December 2028 LEAP calls with strikes in the low $700 range, reflecting a bullish multi-year outlook and signaling conviction beyond current share price levels. By choosing LEAPs instead of direct equity, he leverages potential gains while capping initial capital outlay.
2. Microsoft’s Year-to-Date Decline
Microsoft shares have fallen over 20% year-to-date due to concerns about rising AI spending and pressure on cloud margins, marking one of its weakest stretches in recent years. The pullback has drawn attention from investors seeking discounted entry points in the company’s long-term growth story.
3. Portfolio Rebalancing Moves
Alongside the Microsoft position, Burry covered half of his Palantir short, sold Alibaba for tax-loss harvesting, and added stakes in JD.com at $24.79, Adobe at $195.11 and Fiserv at $47.55. This rotation underscores a focus on select technology and fintech names expected to benefit from shifting market dynamics.
