Investor Michael Burry closed his short position on Oracle, according to recent filings. The move comes after Oracle’s stock fell roughly 51% from its peak in the third quarter of 2025. Burry, best known for betting against the housing market before the 2008 financial crisis, had taken a bearish stance on the tech giant earlier this year.
Burry’s bet and its timing
Burry’s short position was disclosed in a regulatory filing earlier in 2025. The exact size of the bet and the date he closed it were not made public. The stock’s steep decline from its Q3 2025 high suggests the trade was profitable, but Burry’s firm did not comment on the outcome.
Oracle’s shares have been under pressure for months. The company reported slowing cloud revenue growth and faced increased competition from rivals like Microsoft and Amazon. Analysts have also pointed to macroeconomic headwinds hitting enterprise software spending.
Oracle’s 51% slide
From its Q3 2025 peak, Oracle’s stock lost more than half its value. The decline wiped out billions in market capitalization. Investors grew wary after Oracle’s cloud division missed earnings targets in two consecutive quarters. The company’s push into AI infrastructure has yet to deliver the growth some expected.
Burry’s exit from the short side could signal he believes the worst is over for Oracle. But without a public statement, his reasoning remains unclear. Other hedge funds have also adjusted their Oracle positions in recent weeks, though no pattern has emerged.
What’s next for Oracle
Oracle is scheduled to report its next quarterly earnings in December. The company will need to show improvement in its cloud business to regain investor confidence. Burry’s move adds another layer of uncertainty: if a well-known bear is stepping away, does that mean the stock has bottomed? Or was the trade simply closed for other reasons?
For now, the market is left guessing. Burry’s filing offers no explanation, and Oracle’s management has not addressed the short seller’s activity. The next earnings call will be the first chance for executives to lay out a recovery plan.
