Michael Burry Bets on PayPal and Other Software Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy PYPL?
Source: Fool
- PayPal Investment: Michael Burry has initiated a 3.5% position in PayPal, which has fallen below $50 per share due to AI concerns; however, its prudent stock-based compensation policy and discounted valuation make it attractive in the competitive digital payments market.
- Salesforce Outlook: Burry plans to increase his stake in Salesforce, which has dropped nearly 30% this year, yet its 23% share of the global CRM market and AI-driven Agentforce product provide a competitive edge, with the stock currently trading at 14 times forward earnings.
- MSCI Potential: Burry also intends to buy MSCI, which has risen 6% this year; despite facing AI competition in financial research tools, its current price-to-earnings ratio of 31 is below the five-year average, indicating potential value.
- Market Dynamics Analysis: Burry views the recent sell-off in software stocks as a
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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: 45.440
Low
51.00
Averages
72.86
High
100.00
Current: 45.440
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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- Rich Course Content: The course comprises nine lessons delivered through videos by AI fluency researchers and small business owners, having already provided practical training to over one million learners, thereby enhancing small businesses' success in AI adoption.
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- Launch of Small Business Initiative: As part of the settlement, PayPal is required to launch a new Small Business Initiative that excludes criteria based on race, national origin, or other protected characteristics, aiming to promote broader economic opportunities and enhance its competitiveness in the small business market.
- Background on Economic Opportunity Fund: The Economic Opportunity Fund, launched by PayPal in 2020 with a $500 million commitment to invest in black and minority-owned businesses, is not subject to fines in this settlement, indicating that the company was not found in violation of the Equal Credit Opportunity Act.
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- Investigation Background: The DOJ highlighted that PayPal's investment initiative aimed at Black and minority-owned businesses was implemented in a manner that exhibited systemic discrimination, potentially leading to long-term negative implications for the company's social responsibility and brand image.
- Legal Consequences: This settlement serves not only as financial restitution for past actions but may also compel PayPal to enhance compliance measures in the future to prevent similar legal issues, thereby influencing its operational strategy.
- Market Reaction: Although the settlement amount is relatively small, this incident could raise investor concerns regarding PayPal's social responsibility, potentially affecting its stock performance and market confidence.
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