"Big Short" investor Michael Burry on Tuesday disclosed he sold off Microsoft shares, closed his short position in Oracle stock, and partially reduced his bearish bet in Palantir stock, according to a trading update on his Substack page. Burry's trades followed strong quarterly earnings from Big Tech companies, with Microsoft, Amazon, and Alphabet beating revenue and profit expectations. The timing of Burry's exits came as Microsoft and Palantir reported robust results, with Palantir's stock surging nearly 30% on Tuesday after blowout earnings, while Oracle has yet to announce its quarterly results date.
Burry Exits Microsoft Position After Earnings Beat
Burry first disclosed a position in Microsoft in April and recently unwound it, according to his Substack trading update. "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.
Microsoft issued its quarterly report last week, with revenue increasing 19% in the company's fiscal fourth quarter. Azure Cloud and other services' sales climbed 43%, both figures above Wall Street's projections at the time. The stock soared over 25% in the four sessions since Microsoft issued the results.
Burry Closes Oracle Short Position With Substantial Profit
On the Oracle trade, Burry stated, "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 received a lift this month.
Burry Maintains Palantir Short Despite Earnings Surge
Burry sold or let expire his January put options on PLTR but kept his direct short position in the stock. Burry has been one of the most vocal critics of Palantir, routinely flagging concerns with the company's accounting and spending.
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 beat expectations of $1.81 billion in revenue and EPS of $0.35. The company 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.
Stock Valuations and Retail Sentiment Data
Of the three stocks, Palantir trades at 86.2 times its forward earnings, Microsoft 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.
FAQ
What stocks did Michael Burry exit on Tuesday?
Michael Burry sold off Microsoft shares, closed his short position in Oracle stock, and partially reduced his bearish bet in Palantir stock, according to a trading update on his Substack page on Tuesday.
Why did Michael Burry close his Oracle short position?
Burry closed his Oracle short position (January 2027 low 100s strikes puts) because the profit was substantial. He stated he decided not to roll the options and left the trade at that, though he noted he may re-enter Oracle puts should volatility come down.
What were Palantir's second-quarter earnings results?
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 company beat expectations of $1.81 billion in revenue and $0.35 EPS, and raised its 2026 revenue forecast to $8.15-8.16 billion from a prior top-end range of around $7.66 billion.
