Michael Burry Unlocks Research For Father's Day, Says AI Will Create Software Winners And Losers: Here Are The Stocks He Highlighted
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Famed “Big Short” investor Michael Burry made one of his software-sector research reports freely available for Father’s Day on Sunday, outlining the companies he believes are best positioned to navigate the artificial intelligence era and those facing greater disruption risks.
The Substak post, published on May 29, highlighted software stocks including Adobe Inc. (NASDAQ:ADBE) Intuit Inc. (NASDAQ:INTU), Autodesk Inc. (NASDAQ:ADSK) and DocuSign Inc. (NASDAQ:DOCU), separating companies Burry sees as AI winners from those facing greater risks.
Adobe, Autodesk Seen As Better Positioned
According to Burry, Adobe is one of the software companies he believes is better positioned for the AI era, adding that the market has become overly pessimistic about its prospects, as investors worry that generative AI could replace creative software.
“LLMs, no matter how advanced they get at being LLMs, will never beat that creative instinct of a talented human being,” Burry said, citing Adobe’s expanding AI offerings, including Firefly, Firefly Foundry and Acrobat AI, as well as its broad distribution across the OpenAI, Anthropic, Alphabet Inc‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and Microsoft Corp (NASDAQ:MSFT) ecosystems.
Burry said Autodesk benefits from serving industries where expertise, accountability and regulatory requirements remain central to the workflow, creating a role that AI tools cannot easily assume.
Intuit Benefits From Trust And Accountability
Burry was also positive on Intuit, citing the company’s presence in tax preparation, accounting and financial services, as well as its proprietary data, industry expertise and long-standing customer relationships.
Quoting Intuit CEO Sasan Goodarzi, Burry said that customers seek accountability when making important financial decisions and that “ultimately, customers buy confidence, not code.”
DocuSign Faces A Tougher AI-Era Outlook
Burry was more cautious on DocuSign, as he believes the company’s e-signature business has plateaued. At the same time, competition continues to emerge from AI-powered workflows, contract management platforms, and larger software providers.
“The Stone classification reflects acute AI-era exposure,” Burry said, adding that AI agents could reduce the importance of traditional e-signature products over time.
He also pointed to competition from Adobe Acrobat Sign, Microsoft 365 and contract lifecycle management providers, adding that “a first mover in e-signature… was always destined to be subsumed or competed out of existence, even if over an extended period of time.”
Broader Tech View
Burry contrasted CrowdStrike Holdings Inc.‘s (NASDAQ:CRWD) leadership in endpoint security with Palo Alto Networks Inc.’s (NASDAQ:PANW) broader cybersecurity platform, describing Palo Alto as the more complete offering as enterprises increasingly consolidate vendors and adopt AI tools across their operations.
Benzinga edge rankings indicate ADBE has a Momentum score in the 3rd percentile and a Growth score in the 8th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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