On June 26, the blue-chip technology giant Microsoft (NASDAQ: MSFT) received a sudden buy signal in the form of the legendary short trader, Michael Burry, making a long bet on the stock.
Specifically, the ‘Big Short’ investor revealed he has made a bullish MSFT bet by purchasing December 2028 LEAP call options that have a strike price in the low $700 range.
According to Burry, Microsoft stock has become attractive at roughly $350, but he decided to purchase derivatives on account of them being comparatively cheap.
Meanwhile, MSFT shares reacted immediately to the purchase from one of Wall Street’s most famous investors.
Indeed, Microsoft stock opened 4.09% in the green on Friday, June 26, erasing most of the losses it suffered since Wednesday. Still, the technology giant remains more than 11% in the red month-to-date, and an even more severe 22% down year-to-date (YTD).
Michael Burry portfolio performance in 2026
Elsewhere, despite the reputation Burry gained for his trading ahead of the Great Recession, his recent track record has been more mixed.
For example, the legendary investor’s long position in Lululemon Athletica (NASDAQ: LULU) remains in the red, and his bearish bet against the semiconductor giant Nvidia (NASDAQ: NVDA) has been teetering on the knife’s edge for weeks.
His bet against Palantir (NASDAQ: PLTR) – a bet he revealed to have partially covered at the same time he unveiled the MSFT long trade – has, on the other hand, been successful, and the software firm is down more than 33% in 2026.
Can Microsoft stock reverse its 2026 losses?
Lastly, Michael Burry is far from the only prominent Microsoft bull. Despite the company’s struggles in the 2026 market, Wall Street has remained generally optimistic regarding its future.
Overall, MSFT stock is considered a ‘Strong Buy’ with a 51.88% forecasted rally to $562.10 in the next 12 months, per the data Finold retrieved from TipRanks on June 26.
Furthermore, despite the volatility gripping the markets since the month started, Stifel Nicolaus’ Brad Redback is the only Wall Street expert to issue a ‘Hold’ recommendation for the equity in recent weeks. Furthermore, even the associated downgraded $400 price target estimates MSFT will rally from its press time price of $367.26 in the coming 52 weeks.
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