Michael Burry, famous for his bold bet against the 2008 housing market, has closed his short position on Oracle after the stock plunged about 51% from its peak in 2025. His wager against the tech giant began at least six months before he mentioned it publicly in January 2026.
Burry had laid out his negative view of Oracle in a January post on his Substack, where he criticized the company’s strategy, its cautious investment in AI, and some financing moves he found questionable. The stock's steep decline seemed to validate his concerns.
Oracle wasn’t the only company on Burry's radar. His January update also revealed puts on other AI-focused firms like Nvidia. Meanwhile, he started scaling back his short position on Palantir by June 2026, showing that he’s selectively managing his bets instead of holding onto all his shorts.
This pattern sends a nuanced message to investors tracking AI sector trades. It’s not about dumping every AI-related stock but identifying which companies have real issues versus those caught in hype waves. For those watching closely, Burry’s moves highlight the importance of picking fights wisely.
