ADBE, VEEV Rise Overnight: Michael Burry Boosts Stakes On 'Lighter Expectations Stocks'

• Burry purchased Adobe stock at $199.59 and Veeva stock at $159.05, he disclosed on Saturday.
• Burry has doubled down on Adobe after the stock fell despite the company’s earnings report last week.
• Stocktwits sentiment was ‘extremely bullish’ for ADBE and ‘bearish’ for VEEV.

Ace investor Michael Burry has increased his stakes in Adobe and Veeva Systems, among other companies, doubling down on stocks he has previously identified as attractive value opportunities. 

He also reiterated his view that many richly valued technology stocks are headed for a correction, while a new crop of value stocks is emerging that could offer investors protection, arguing that “lighter-expectations stocks will float to the top.”

Burry Buys ADBE, VEEV Stocks

Burry purchased Adobe shares at $199.59, adding that the company’s gross margin is currently near an all-time high of 89.4%, he disclosed in a trading update on Substack on Saturday.

Adobe declined nearly 7% to close at $204.02 on Friday, after the company said during quarterly results that its short-term revenue would be pressured as it focuses on a “freemium” model.

“The Big Short” purchased Veeva stock at $159.05; the stock closed at $159.54 last week. “It has come back to lows, with its price/earnings and price/sales far below historical levels. The Salesforce threat is only relevant to a small part of its business. The significance has been far overstated,” he wrote. 

ADBE shares were up 1.6% in the overnight session ahead of Monday, while VEEV stock was up 1.5%. The move was supported by a jump in U.S. futures after President Donald Trump announced a peace deal with Iran, which would be formalized later this week.

ADBE Stock Under Pressure After Earnings

Adobe shares tumbled last week, despite the Photoshop maker posting strong second-quarter results and raising its full-year outlook. The decline followed management’s indication that it is prioritizing user growth over near-term revenue by continuing to offer “freemium” versions of its design and AI tools and holding off on planned price increases for its Creative Cloud suite.

With the stock down 42% year to date, Adobe has been one of the key casualties of the growing belief that AI could erode demand for some traditional software offerings. Burry, on the other hand, has turned bullish.

Last month, Burry published an analysis of publicly traded software companies and singled out Adobe as one of his top picks, citing strong momentum for its Firefly AI products, growing enterprise adoption, potential for revival under new management that is yet to be appointed, and the company’s deep integration into large organizations and creative workflows.

Ahead of the company’s results, he said that “the market is underpricing the stock by quite a bit.”

Veeva Systems, a leading provider of cloud software for the life sciences industry, has reported strong adoption of its Vault CRM platform and is expanding its AI and agentic AI tools at a rapid clip alongside continued expansion among large pharmaceutical customers. 

At 17.3 times forward price-to-earnings, Veeva is trading below several software peers on valuation metrics despite its leadership position, which fits Burry’s preference for profitable, cash-generative companies that he believes the market is undervaluing. VEEV stock has declined nearly 30% year to date.

On Stocktwits, the retail sentiment for ADBE has remained ‘extremely bullish’ since the design company’s earnings report on Thursday. The sentiment for VEEV was ‘bearish,’ unchanged from the previous day. 

Burry Sees Value Stocks Emerging

In a separate thread on his Substack page, Burry discussed his broader thoughts on the market to a user seeking clarity around his thesis of the market heading towards a dot-com-style crash and where the opportunity lies in the non-tech space.

“I am invested in the out of favor very compressed stocks next to the short stuff,” he replied. 

“We are now seeing the bifurcation and therefore creation of extreme value alongside extreme overvaluation (denominator dominated). This means a big pool of value is developing… I do think there are US stocks one can buy now that would not participate in a true market crash,” he said, without naming specific equities.

“There will be destruction of liquidity - the punch bowl will be drained to a good extent, and lighter expectations stocks will float to the top, as the heavy expectations stocks see market value simply disappear,” he wrote.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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