- Famed ‘The Big Short’ investor Michael Burry announced he increased his stake in Paypal (PYPL) in a post on Substack.
- He argues the market is overlooking strong, profitable companies like PayPal amid the AI hype while spending billions on unproven large language models.
- Burry contends PayPal‘s valuation—trading at a forward P/E of 7.7—is now attractive enough for potential private equity or strategic acquirers.
- Retail sentiment on platforms like Stocktwits remains cautiously optimistic, with the stock trending after Burry’s announcement.
Michael Burry, the investor famed for predicting the 2008 housing crash, has revived his bullish stance on PayPal Holdings Inc. (PYPL). In a recent post on Substack, he confirmed adding to his position at $40.98 per share, a move that has garnered significant retail attention.
Consequently, shares of the payments giant edged higher in overnight trading on Sunday. However, the stock has still lost over 28% of its value so far in 2026, according to data from Koyfin.
Burry’s latest rationale frames this as a rotation into stocks the market has overlooked. “The market continues to punish the stocks of large, well-established businesses with significant owners earnings, little debt, and large buybacks,” he wrote.
He specifically warned that the current AI craze is misdirecting capital. Burry argued that no one is using true AI yet and that spending on large language models is hitting diminishing returns.
Meanwhile, he believes PayPal’s depressed price creates a unique opportunity. “Has to look attractive to both PE firms and strategic acquirers at this level, 7-8x earnings and buying back stock hand over fist,” Burry noted.
His long-term bull case has consistently centered on PayPal‘s fundamentals and restructuring. Burry has previously highlighted the company’s buyback efforts, debt-free status, and the potential of its Venmo platform.
On retail platforms like Stocktwits, sentiment shifted from ‘extremely bullish’ to simply ‘bullish’ amid high message volumes. One user stated, “When the guy who called the housing collapse starts accumulating, you take note.”
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