Central to the jury's considerations was whether a gun was drawn before the fatal stabbing.

It emerged during the trial that Michael's friend Reece Rowe, who was there during the incident, kept a replica pistol.

But the jury rejected his and his girlfriend's claims it wasn't present on the fateful night or pulled on Howes before the 16-year-old was stabbed.

The defence questioned several witnesses about whether they had arranged a drug deal or had in fact gone, armed with a gun, to rip off Howes.

During the trial, the jury was also shown texts between Michael and Mr Rowe where they appeared to celebrate acts of violence.

"Just sliced someone with a samurai sword bro," Michael wrote about a week before his death.

Members of Michael's family burst into tears as the not guilty verdict was read out, as others uttered "you're joking".

Howes was not released as the court was told he remained in custody on other matters.

AAP