Michael Burry Reenters Investment Scene with Microsoft Bet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2026
0mins
Should l Buy MSFT?
Source: Fool
- New Investment Direction: Michael Burry recently announced a new investment in Microsoft (MSFT) through his Substack, reflecting his confidence in 'bombed-out software and payment stocks,' despite Microsoft experiencing a 23% drop in Q1, marking its worst performance since the 2008 financial crisis.
- Software Sector Analysis: Burry believes the pressures facing the software industry stem from a 'reflexive positive feedback loop' between declining software stock prices and corporate debt, but he asserts that this dynamic cannot persist much longer, suggesting a potential rebound ahead.
- AI Impact Assessment: While Burry acknowledges the serious impacts of AI on several software companies, he remains unconcerned about the stocks he has chosen, believing they still hold investment value, particularly given the strong performance of Microsoft's Azure cloud business.
- Copilot Growth Potential: Although Microsoft's AI assistant Copilot currently has only 15 million paid users, a small fraction of its Microsoft 365 user base, CEO Satya Nadella is actively working on releasing new features, which could become a growth engine in the future, despite the presence of many AI assistant options in the market.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 420.770
Low
500.00
Averages
631.36
High
678.00
Current: 420.770
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Growing Project Backlog: The company's project backlog has ballooned to nearly $100 billion, highlighting robust prospects in cloud infrastructure, particularly bolstered by a $21 billion agreement with Meta Platforms, which enhances market confidence.
- Increased Capital Expenditure Guidance: Due to rising component costs, CoreWeave raised the lower end of its full-year capital expenditure budget to $31 billion, illustrating the cost challenges faced during expansion while also reflecting its strong commitment to future growth.
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- Sensitive Data Control: The tool emphasizes not only abstract AI policy but also the control of access to sensitive data, ensuring that the use of AI systems and interactions are monitored, thereby reducing risks faced by enterprises.
- Enhanced Market Competitiveness: While Microsoft shows potential in AI investments, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, reflecting market attention and expectations for Microsoft's AI governance tools.
See More
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