Burry Increases PayPal Stake, Market Mispricing Highlighted
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Yahoo Finance
- Management Impact: Burry highlights that management turnover at PayPal is hurting the stock price, suggesting that this makes the company attractive to private equity firms and strategic acquirers, potentially providing a floor for the stock despite not predicting it will outcompete rivals.
- Strong Cash Flow: PayPal generated approximately $6 billion in free cash flow in 2025, which remains substantial even during stock underperformance, indicating that the company still possesses competitive advantages in cash generation that are appealing to acquirers.
- Valuation Compression: PayPal's valuation has compressed to significant discounts compared to historical multiples and fintech peers, even as the company processes hundreds of billions in payment volume annually and retains a user base in the hundreds of millions, reflecting a market mispricing of its potential value.
- Buyback Program Support: PayPal is actively engaging in a stock buyback program, reducing its float, and Burry believes the current stock price is below intrinsic value, which will enhance per-share value over time, providing structural support for long-term investors.
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Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 42.080
Low
51.00
Averages
72.86
High
100.00
Current: 42.080
Low
51.00
Averages
72.86
High
100.00
About PYPL
PayPal Holdings, Inc. offers a technology platform. The Company’s products are designed to enable digital payments and simplify commerce experiences for consumers and merchants to make selling, shopping, and sending and receiving money simple, personalized, and secure, online or offline, including mobile. It provides consumers with a digital wallet that enables them to send payments to merchants securely using a variety of funding sources, which include a bank account, a PayPal or Venmo account balance, its consumer credit products, a credit card, a debit card, certain cryptocurrencies, or other stored value products. It operates a global, two-sided network at scale that connects consumers and merchants with 434 million active accounts across approximately 200 markets. Its brands include PayPal, Braintree, Venmo, Xoom, Hyperwallet, PayPal Zettle, PayPal Honey, and Paidy. It offers financing products through the PayPal Working Capital (PPWC) and PayPal Business Loan (PPBL).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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