Microsoft Falls 18% in June, Hits 3-Year Low; Burry Buys Call Options Betting on $700-750 Recovery

Microsoft shares plunged 18% in June, marking the worst month since the 2000 dot-com bubble, with year-to-date losses reaching 24% and the stock hitting a 3-year low. The decline wiped out approximately $857 billion in market value and pushed the company to the bottom of the Magnificent Seven tech stocks. Forward price-to-earnings ratio fell to approximately 21 times, the lowest in three years, as investors weighed concerns over heavy AI capital expenditure and software market disruptions.

Michael Burry, the investor famous for predicting the subprime crisis, disclosed last Thursday that he has purchased Microsoft call options, betting the stock will reach $700-750 by 2028. The announcement triggered a 6% rally in Microsoft shares on Friday.