Archive · 13 Jan 2026
Michael Burry Bets Against Oracle
Michael Burry, the investor who predicted the 2008 housing market crash, is now betting against Oracle.
He thinks Oracle is making a big mistake by trying to become a cloud computing company.
Oracle's founder, Larry Ellison, wants to build lots of data centers and buy expensive computer chips to compete with bigger companies like Amazon and Microsoft.
Burry thinks this is a bad idea because it's very expensive and risky.
Oracle has borrowed a lot of money to do this, and if it doesn't work out, they could be in big trouble.
Burry has been shorting Oracle's stock, which means he's betting it will go down.
He thinks Oracle doesn't have a safety net like other big tech companies do.
The stock market has already shown some concerns, with Oracle's stock dropping after an initial rise.
Only time will tell if Burry is right this time.
Michael Burry, known for predicting the 2008 housing market collapse, is betting against Oracle by taking put options and shorting the stock.
Oracle is shifting from database software to cloud computing and AI infrastructure, a move Burry believes is risky and driven by ego.
Oracle has taken on approximately $95 billion in debt to fund its aggressive expansion, which Burry sees as dangerous.
Unlike competitors like Meta, Alphabet, and Microsoft, Oracle lacks diversified revenue streams to cushion a potential fall.
Oracle's stock performance has been volatile, initially rising 36% in September 2025 but then dropping 40% by year's end.
- Who
- Michael Burry, a well-known investor, is betting against Oracle.
- What
- Burry has taken put options on Oracle and has been shorting the stock.
- When
- Burry has been shorting Oracle for the past six months.
- Where
- The financial markets, with Oracle's stock trading on public exchanges.
- Why
- Burry believes Oracle's shift to cloud computing and AI infrastructure is risky and driven by ego.
- Michael Burry
- Investor known for predicting the 2008 housing market collapse
- Oracle
- Technology company shifting from database software to cloud computing
- Put Options
- Bets that a stock will fall in value
- Debt
- Oracle has taken on approximately $95 billion in debt
- AI Infrastructure
- Oracle's focus on building data centers and acquiring Nvidia chips
- Stock Performance
- Oracle's stock dropped 40% from its September 2025 peak by year's end
- Competitors
- Amazon Web Services and Microsoft Azure
- Substack Newsletter
- Platform where Michael Burry shares his market views