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Home/Business/Michael Burry Buys More PayPal: Fintech …

Michael Burry Buys More PayPal: Fintech Value Play

Business
By ThePip Desk•
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A PayPal debit card on a stack of financial reports with a pen and notebook on a wooden desk.

PayPal debit card on financial reports with pen and notebook

Key Highlights

Michael Burry increases PayPal stake, betting on undervalued fintech stock with strong cash flow as a potential acquisition target.

Burry Boosts Stake in PayPal

Michael Burry, the investor renowned for predicting the 2008 housing crisis, has significantly increased his stake in PayPal (PYPL). He views the fintech giant as a mispriced opportunity, betting on its potential as an acquisition target rather than a growth play.

This move was disclosed in Burry’s June 12 Substack post and Scion Asset Management’s first-quarter 2026 13F filing.

Why PayPal Attracts Burry’s Eye

Burry’s investment strategy for PayPal centers on its low valuation, making it attractive to private equity firms and strategic acquirers. He attributes the stock’s underperformance partly to management turnover.

  • PayPal generates substantial free cash flow.
  • It boasts an extensive user base within the digital payments sector.
  • The company’s active share buyback program enhances per-share value.
  • Independent analyses also suggest PayPal as a potential activist or acquisition target.

A Pattern of Value Investing

This investment aligns with Burry’s broader pattern of targeting large, established companies undervalued due to market pessimism. These firms typically exhibit strong underlying cash generation.

  • Recent additions include Adobe (ADBE), Alibaba (BABA), and Veeva Systems (VEEV).
  • All these companies are characterized by solid fundamentals like high gross margins and minimal debt.

New PayPal CEO Alex Chriss, who took office in September 2023, is implementing initiatives to improve margins, with expected positive impacts in 2026 and 2027.

Unusual Transparency

Burry’s public detailing of his rationale for these investments is unusual. This transparency suggests a high level of conviction and potentially a shorter investment timeline than his typical long-term horizon.

Michael BurryPayPal