Michael Burry buys more Adobe; Bill Ackman invests in S&P Global

Billionaire investors Michael Burry and Bill Ackman are making notable moves in the stock market. Both have recently disclosed significant investments in companies they believe are undervalued. Ackman has purchased shares of S&P Global, a company that provides financial data and analytics, while Burry has increased his stake in Adobe, a leading software provider.

Ackman’s interest in S&P Global comes as the stock has dropped over 20% from its 2025 peak. The decline stems from investor concerns that artificial intelligence could commoditize financial data. However, Ackman argues that these fears misinterpret the company's core strengths. S&P Global operates key businesses that are not easily replicated by AI, such as its Ratings and Indices divisions. The Ratings segment, a near-duopoly with Moody's, plays a crucial role in assessing corporate debt, which companies value for the cost savings and trust associated with S&P ratings. Furthermore, with a wave of pandemic-era debt needing refinancing soon, Ackman anticipates continued demand for S&P's services.

Similarly, Burry's investment in Adobe is based on his belief that market fears surrounding AI's impact on the software industry are overstated. Adobe’s stock is currently trading at a fraction of its historical valuation, reflecting anxieties that AI-generated images will reduce the need for its popular products like Photoshop. However, Burry contends that Adobe's established position in enterprise workflow is a significant barrier to entry for competitors. Companies have invested heavily in training and integrating Adobe’s tools, making a transition to alternative AI models unlikely. Additionally, Adobe is harnessing its own AI capabilities, like the Firefly model, to enhance its offerings while protecting brands from copyright issues.

Both investments highlight a broader strategy of identifying companies that are resilient against market fears. While S&P Global and Adobe face challenges from technological advancements, their established market positions and business models may provide a buffer. Investors will be watching closely to see if these strategies pay off as the landscape continues to evolve.