ABDE Stock Poised For Best Rally In Over A Year — What’s Michael Burry Got To Do With It?

• The contrarian investor said that the feedback loop between software credit and software stocks had been a key factor behind recent losses in the sector.
• However, Burry said that the decline was temporary. 
• Apart from ADBE, the investor also said that he had invested in shares of Autodesk and Veeva Systems.

Adobe Inc. (ADBE) shares surged more than 5.8% on Monday, on track for the highest gains since April 9, 2025, after ‘The Big Short’ investor Michael Burry said he had invested in the stock.

“Today I committed to a low normal position in each of ADBE and ADSK,” Burry said in a post on Substack, indicating that he had purchased shares of Adobe and software company Autodesk Inc.

Meanwhile, ADSK rose about 3% at the time of writing.

Burry’s Rationale

“The reflexivity between software credit and software stocks has been a main driver of negative returns this past several months, culminating in a deep sell-off last week,” Burry said in the post.

Despite the “powerful technical factor” that was driving down software stock valuations, the investor said that the decline was temporary. “The credit side for software is not large enough to continue driving these stocks lower for much longer,” he added.

Apart from ADBE and ADSK, Burry also said that he invested in Veeva Systems Inc. (VEEV) shares.

Adobe’s AI Push

Adobe’s software has come under pressure amid growing concerns over how artificial intelligence would impact its creative platform in the long term despite the company forging ahead with generative AI capabilities across its Document Cloud and Creative Cloud suites.

Most recently, BTIG analyst Nick Altmann initiated coverage of Adobe with a ‘Neutral’ rating and no price target, saying that AI was raising a host of concerns about the future of the creative ecosystem.

The analyst believes that this drives worries about Adobe's longer-term revenue and margin trajectory, as per TheFly. BTIG also said that it wants more conviction on how AI ultimately reshapes the creative space and Adobe's financial profile before recommending the shares.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around ADBE shares improved from ‘bearish’ to ‘neutral’ territory over the past 24 hours amid ‘low’ message volumes.

One bullish user cheered the upward momentum.

However, another user cautioned against trading on Burry’s recommendation.

ADBE stock has declined more than 28% so far this year. Meanwhile, ADSK stock and VEEV stock have fallen more than 21% and 28%, respectively.

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