Michael Burry's Bullish Microsoft Bet

Michael Burry, known for 'The Big Short,' has made a significant bullish bet on Microsoft by purchasing December 2028 LEAP call options with a strike price near $700. This move suggests Burry believes Microsoft's stock, currently trading around $350-$370, will nearly double by the end of 2028. The investment is a deeply out-of-the-money, long-dated option, offering leveraged exposure with capped downside. Burry's thesis is supported by Microsoft's accelerating business, including 18.3% Q3 FY2026 revenue growth, 40% Azure growth, and its AI business surpassing a $37 billion annualized run rate. This trade aligns with Burry's broader 2026 playbook of going long on undervalued companies like Adobe Inc. and PayPal while shorting overvalued AI stocks such as Nvidia and Palantir. The exact size of Burry's position is unknown as Scion Asset Management no longer files 13F reports. Analysts generally agree on Microsoft's positive direction, with an average price target of $561.11, though Burry's $700 strike is more aggressive. The restructured partnership with OpenAI further underpins Microsoft's platform story.