QXO Stock Jumps 7% After Michael Burry Discloses New Stake

TLDR

• Michael Burry disclosed a stake in QXO, buying both common and preferred stock in the building-products company
• QXO jumped 7.4% Monday following Burry’s Substack post revealing the investment
• Burry cited CEO Brad Jacobs’ track record and QXO’s roll-up strategy as key reasons for the bet
• He favors the 5.5% Series B mandatory convertible preferred for its dividend yield as downside protection
• Retail sentiment on Stocktwits surged to “extremely bullish,” with monthly message volume up 467%

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Michael Burry, the investor made famous by his bet against the housing market before the 2008 financial crisis, disclosed a new position in QXO on Monday. The stock jumped 7.4% on the news.

Burry revealed the investment in a Substack post, writing: “QXO is a building products roll-up. Scale makes sense in this business.” He owns both QXO common stock and its 5.5% Series B mandatory convertible preferred stock.

QXO, Inc., QXO

QXO closed at a price reflecting that 7.4% single-day gain, making it one of the more notable market moves on Monday.

The bet centers on CEO Brad Jacobs, who previously founded United Rentals and XPO. Burry pointed to Jacobs’ history of building companies through acquisitions as a core part of his thesis.

“The stock is way down, and I see an opportunity to jump on board,” Burry wrote.

QXO has been aggressively acquiring companies in the fragmented building-products distribution market. It completed its acquisition of Beacon Roofing Supply in 2025, giving it a large distribution network across roofing and construction markets.

Burry Likes the Preferred for Downside Protection

Burry said he favors the preferred stock, which offers a 7.4% cumulative current yield. The securities will automatically convert into common stock around May 15, 2028, unless converted earlier.

“The common is about as attractive as the preferred, but I like the dividend as some downside protection,” he said.

He acknowledged the stock faces headwinds from housing market uncertainty, interest rates, and diesel costs, but sees those as noise rather than structural problems.

Retail Traders Piled In Fast

On Stocktwits, retail sentiment toward QXO jumped to “extremely bullish” from “bullish” just a week earlier. Monthly message volume surged 467%, and the ticker’s watcher base grew 4%.

That kind of retail reaction to a Burry disclosure is not unusual. His name still carries weight, especially among value-focused investors.

Burry’s wider portfolio update revealed he is stepping back from the AI trade entirely. “The house party is packed, pushing AI higher today, but I am largely ignoring the ‘woo-hoos,’” he wrote.

His other new positions include Ero Copper, Sprouts Farmers Market, and Zoetis. He is also adding to Temple & Webster, the Australian online furniture retailer down roughly 82% over the past year.

QXO’s stock remains well below its highs, which is part of what attracted Burry. His thesis relies on the company continuing to execute on acquisitions and realizing the benefits of operating at greater scale.

Retail message volume on QXO surged 467% in the month following the disclosure, suggesting the position has drawn broad attention beyond just institutional investors.