QXO (QXO) Stock Surges 7% as Michael Burry Reveals New Investment

Key Takeaways

• Michael Burry announced an investment in QXO, purchasing both common shares and preferred convertible stock in the building-materials distributor
• The stock surged 7.4% on Monday after Burry shared his investment rationale on Substack
• Burry highlighted CEO Brad Jacobs’ proven acquisition expertise and QXO’s consolidation approach as primary investment drivers
• He prefers the 5.5% Series B mandatory convertible preferred shares for their dividend protection and current yield
• Stocktwits data shows retail enthusiasm spiked to “extremely bullish” levels, with message activity soaring 467% month-over-month

Michael Burry, best known for profiting from the subprime mortgage collapse depicted in “The Big Short,” announced a fresh stake in QXO on Monday. Shares responded with a 7.4% surge.

The famed investor shared his rationale via Substack, stating: “QXO is a building products roll-up. Scale makes sense in this business.” His position includes both ordinary shares and the company’s 5.5% Series B mandatory convertible preferred shares.

QXO, Inc., QXO

Monday’s closing price captured the full 7.4% advance, marking QXO as among the session’s standout performers.

The investment thesis revolves around CEO Brad Jacobs, whose entrepreneurial resume includes founding United Rentals and XPO. Burry emphasized Jacobs’ demonstrated ability to scale businesses through strategic acquisitions.

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

QXO has pursued an aggressive acquisition campaign within the fragmented building-materials distribution sector. The 2025 completion of its Beacon Roofing Supply acquisition established a substantial footprint across roofing and construction distribution channels.

Convertible Preferred Shares Offer Yield Cushion

Burry expressed particular interest in the preferred shares, which deliver a 7.4% cumulative current yield. These instruments are scheduled for automatic conversion to common stock on approximately May 15, 2028, though early conversion is possible.

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

While recognizing challenges from housing market volatility, interest rate fluctuations, and fuel expenses, Burry characterizes these factors as temporary rather than fundamental concerns.

Retail Interest Explodes Following Disclosure

Retail investor sentiment on QXO via Stocktwits escalated from “bullish” to “extremely bullish” within a week. Monthly discussion volume exploded by 467%, while the stock’s follower count expanded 4%.

Such enthusiastic retail response to Burry’s moves has become typical. His reputation continues resonating strongly, particularly among value-oriented market participants.

Burry’s broader portfolio commentary revealed he’s completely exiting artificial intelligence investments. “The house party is packed, pushing AI higher today, but I am largely ignoring the ‘woo-hoos,'” he stated.

Additional new holdings include Ero Copper, Sprouts Farmers Market, and Zoetis. He’s also increasing his position in Temple & Webster, an Australian e-commerce furniture retailer that’s declined approximately 82% over the trailing twelve months.

QXO shares trade significantly below previous peaks, a valuation dislocation that captured Burry’s attention. His investment case depends on successful acquisition execution and achieving operational scale economies.

The 467% spike in retail discussion volume surrounding QXO demonstrates the announcement resonated far beyond institutional investment circles, generating widespread grassroots interest.

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