Michael Burry rejects short positions in Meta, Google, and Microsoft – Oracle remains in focus

The star investor Michael Burry, known for his role in the film “The Big Short,” has expressed a clear strategy regarding his short positions in the technology sector. While he is currently shorting Oracle, he makes it explicitly clear that there are significant differences between various large tech companies.

Why Burry is Shorting Oracle but cautious with the Big Three

Burry’s approach is based on a simple consideration: the position in Oracle is a targeted short on a specific business model, whereas the situation with Microsoft, Meta, and Alphabet is much more complex. These three companies have built their market positions over decades and are not just bets on artificial intelligence.

The core businesses are too stable

If Burry were to bet on falling prices for Meta, he would also be betting against the global dominance in the social media and advertising markets. With Alphabet, it’s not just an AI bet – one would be speculating against Google’s search engine empire, Android’s market position, and Waymo’s autonomous driving technology. Microsoft, on the other hand, is the giant in cloud computing and enterprise software worldwide.

Burry emphasizes that these core areas will remain and will not suddenly evaporate, even if companies tighten their investments, cut excess capacity, or write down assets. The structural strength of these corporations extends far beyond AI speculation.

Burry remains realistic about tech giants

The investor signals that a pure AI bubble strategy against these companies is too short-sighted. While corrections or valuation adjustments are possible, strategic weaknesses in their core businesses would not develop overnight – and for this reason, Burry stays away from broad short positions on these Big Three.