The investor who called the 2008 housing crash is doing something Wall Street is pretty pessimistic about. He is buy software stocks.
Michael Burrywhose famous business against the mortgage market was portrayed in the film “The big short“,” has been Building positions in a group of well-known technology names. who have fallen into disgrace. Your ultimate goal is sales forcea Dow 30 stock.
Burry is making a clear and deliberate case that the selloff in quality software stocks offers a clear buying opportunity.
Burry doesn’t believe in pressure on software stocks It comes from companies that obtain poor results. He thinks it’s a technical problem as falling prices put additional stress on software-related debt.
Burry wrote in a Substack note:
“I don’t believe in technical pressures “The private credit/software debt issues are big enough to impact these stocks for much longer.”
In other words, if you eliminate fear and hard selling, Many of these companies are still in good shape..
Related: Michael Burry Issues Shocking Verdict on Software Stocks
Beyond Salesforce (CRM), Burry opened a roughly 3.5% position in PayPalmaintained stakes in Fiserv, Adobe, Autodeskand Veeva Systemsand said that plans to add MSCI also.
This is a target group of companies that occupy Important features in payments, design software, business workflows, and data analytics..
Furthermore, these are established companies trading at prices that Burry believes reflect fear more than reality.
Burry has increased his exposure in a company that closed one of the strongest financial years in its history.
Robin Washington, Salesforce’s chief operating and financial officer, told investors at the Morgan Stanley Technology, Media and Telecommunications Conference on March 3 that the company posted record revenue, a record quarter and record cash flows to close fiscal 2026.
The CRM giant returned more than $14 billion to its shareholders, representing approximately 99% of its free cash flow.
Washington also noted what he described as a 300% adoption quarter after quarter from Salesforce premium product packages in the fourth quarter.
That figure reflects real demand from customers willing to pay for expanded capabilities.
Looking ahead, Salesforce told investors it hopes to return to double-digit organic revenue growthand acceleration will occur in the second half of fiscal year 2027.
Washington noted that the company ended fiscal 2026 with what it calls a “Rule of 44“score, a measure that combines revenue growth and operating marginsand points to a “Rule of 50“over time.
Salesforce CEO Marc Benioff is focused on revenue and margin growth this year amid the AI push. TheStreet/Shutterstock
Salesforce also completed its acquisition of Informatica in November and described the integration as progressing faster than expected, with the deal becoming accretive in less than 12 months.
Part of the reason Salesforce stock has come under pressure is the same fear that exists affecting software stocks.
Investors fear that artificial intelligence willpower allow companies to build their own tools and reduce exposure to third-party SaaS platforms.
Salesforce president of AI and enterprise technology Joe Inzerillo rejected this at the Morgan Stanley conference.
He compared the situation to that of skilled tradespeople gaining access to better equipment. Better The tools increase the quality of work for everyone without eliminating the need for tested and trusted platforms..
Inzerillo also argued that Salesforce’s 26 years of customer data give it a structural advantage that is extremely difficult to replicate.
This data feeds its artificial intelligence layer, called agent forceand creates what he described as a continuous improvement loop.
Washington added that Salesforce is tracking what it calls “agent work units” to measure the real business value these AI tools offer customers.
The goal is to show that Salesforce is not just a container for language model tokens. Is Deliver measurable results for the companies that depend on it..
Burry is betting that the market has been so focused on which companies will win the AI race that it has overlooked which established companies are established. quietly building real AI businesses right now.
Based on what Salesforce just reported, the argument has some weight.
Analysts following CRM stockforecasts revenue to rise from $41.53 billion in fiscal 2026 to $60.64 billion in fiscal year 2030.
In this period, the SaaS giant is expected to increase free cash flow from $14.4 billion to $20.8 billion.
If Salesforce stock is priced at 12 times FCF forwardwhich is below the 10-year average of 30x, could 63% return in the next three years. If the FCF multiple expands to 15x, CRM stock could double in three years.
outside the 37 analysts covering Salesforce stock, 28 recommend “Buy”eight recommend “Hold” and one recommends “Sell”. The average price target for CRM stock is $262, indicating a 40% upside from current levels.
Related: ‘Big Short’ Michael Burry Sends Signal About Nvidia Stock
This story was originally published by TheStreet on April 22, 2026, where it first appeared in the Investments section. Add TheStreet as a preferred source by clicking here.
