Michael Burry closes his Oracle short position

Michael Burry, the investor who made his name and a fortune by correctly calling the 2008 housing collapse, has closed his short position on Oracle.

The closure marks the end of a bearish campaign that Burry had been running against Oracle for at least six months before he went public with it in January 2026.

How this trade came together

Burry disclosed his Oracle puts in a January 2026 Substack post, which is how he now communicates with the world after shutting down Scion Asset Management in November 2025. The post was characteristically blunt: he laid out his criticisms of Oracle’s strategic direction, its approach to artificial intelligence investment, and what he viewed as questionable financing decisions.

Oracle’s stock did fall sharply. From its peak in the third quarter of 2025, the stock dropped approximately 51% by early February 2026.

The broader context behind Burry’s tech skepticism

Oracle was not an isolated bet for Burry. His January disclosure also referenced put positions on other AI-adjacent names, including Nvidia.

Separately, Burry had also partially exited his Palantir short position by June 2026, suggesting he is managing his bearish bets selectively rather than holding them indefinitely.

What this means for markets and investors watching the AI trade

For institutional investors watching this space, Burry’s selective approach, closing some shorts while maintaining others, is probably the more important signal than any single trade. It suggests a differentiated view of which AI-adjacent companies face structural problems versus which ones simply got caught up in sector-wide euphoria.

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