Burry Increases PayPal Stake, Calls It Top Pick in Software Payments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy PYPL?
Source: stocktwits
- Stake Increase: Burry disclosed a new 3.5% position in PayPal at $49 in his latest Substack post, asserting that the company ranks above Fiserv and Adobe in the software payments sector, indicating strong confidence in its growth potential.
- Market Reaction: Despite PayPal shares falling over 1% in Thursday's premarket session, they had risen 3% the previous day, reaching a two-month high, reflecting positive market sentiment towards Burry's stake increase and the company's outlook.
- Credit Market Risks: Burry highlighted that the recent decline in software stocks is closely tied to changes in the credit market, with private credit accounting for 30% of the U.S. leveraged finance market by 2025, and analysts warning that concentration in software lending could elevate default risks.
- Investor Sentiment: On Stocktwits, retail sentiment for PayPal surged from 'bullish' to 'extremely bullish', with message volumes jumping 96% over the past week, indicating strong market enthusiasm for Burry's investment and optimism about PayPal's future performance.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PYPL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 50.810
Low
51.00
Averages
72.86
High
100.00
Current: 50.810
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.
PayPal's Stock Continues to Decline, Outlook Worrisome
- Stock Decline: PayPal's share price has dropped 23% over the past 12 months, reflecting market pessimism regarding its future performance, particularly as new CEO Lores faces significant challenges.
- Weak Revenue Growth: Revenue is projected to rise only 2.9% in 2026, while earnings per share may decline by a mid-single-digit figure, indicating difficulties in regaining growth amid intense competition and weaker consumer spending.
- Investment and Buyback Plans: Despite profit pressures, PayPal plans to spend $6 billion on stock buybacks in 2026, equating to 14% of its current market cap, which provides some support for EPS and demonstrates management's focus on capital allocation.
- Cautious Market Sentiment: Although PayPal's P/E ratio has fallen to 8.9, attracting value investors, historical data shows that buying at lower prices can still lead to losses, suggesting that investors should remain cautious until fundamentals improve.
See More
US Navy Seizes Iranian Cargo Ship, Sparking Market Concerns
- Navy Seizure Incident: President Trump announced the U.S. Navy seized an Iranian cargo ship, leading to a cautious market sentiment as investor concerns about Middle Eastern tensions rise, causing oil prices to increase and potentially impacting consumer spending.
- Oil Price Warning: The Energy Secretary warned that gas prices could remain above $3 per gallon until next year, which would negatively affect consumers already feeling the pinch of high costs, further impacting economic recovery.
- Tech and Finance Intersection: Kevin Warsh, Trump's nominee for Federal Reserve Chair, is set for a Senate confirmation hearing, and his close ties to Silicon Valley could change the interaction between tech giants and the Fed, influencing future monetary policy.
- Automotive Dealer Consolidation Trend: Data shows that the top 150 auto dealers in the U.S. increased their market share from 21.2% a decade ago to 27%, reflecting the rise of mega-dealers and the struggles of smaller competitors, potentially leading to significant industry structural changes.
See More
US Navy Seizes Iranian Cargo Ship, Market Sentiment Shifts
- Navy Seizure Incident: President Trump announced that the U.S. Navy seized an Iranian cargo ship in the Gulf of Oman, shifting market sentiment to a defensive stance as investor concerns about Middle Eastern tensions rise, leading to higher oil prices and downward pressure on stock futures.
- Oil Price Warning: Amid fears of escalating tensions in the Middle East, oil prices are rising, with the Energy Secretary warning that gas prices could remain above $3 per gallon until next year, further straining consumers already facing higher costs.
- Tech Ties and Fed: Kevin Warsh, Trump's nominee for the Federal Reserve chair, will face confirmation hearings tomorrow, with his close ties to Silicon Valley raising questions about potential access for tech moguls to the Fed, a point of significant market interest.
- Dealer Consolidation: Data shows that the top 150 car dealerships in the U.S. increased their market share from 21.2% a decade ago to 27%, reflecting a trend of consolidation that benefits larger dealers like Lithia Motors and AutoNation.
See More
Kevin Warsh: Nominee for Fed Chair with Tech Savvy Background
- Wealth and Background: Kevin Warsh's financial disclosure reveals a wealth of nearly $200 million, with significant investments in companies like Palantir and stakes in various startups, indicating a strong background in tech investments that could influence Fed monetary policy.
- Expected Policy Shift: Warsh's critiques of current Fed policies, particularly regarding the $6.7 trillion balance sheet, suggest that his confirmation could lead to significant changes in Fed policy, especially in addressing inflation and economic growth.
- Technology and Economy: Warsh believes that technology will make everything cheaper, and his perspective may prompt the Fed to focus more on future productivity growth when formulating policies, potentially leading to faster non-inflationary growth.
- Connections to Tech Community: Warsh's long-standing relationships with several tech titans may lead him to adopt a more free-market and anti-regulatory stance in Fed decisions, which could impact the direction of financial regulation policies.
See More
Reminder of PayPal Class Action Lawsuit for Investors
- Class Action Notification: Rosen Law Firm reminds investors who purchased PayPal stock between February 8, 2024, and February 2, 2026, to apply to be lead plaintiffs by April 20, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: The lawsuit alleges that PayPal intentionally or recklessly misled investors during this period by claiming significant improvements in its branded checkout business, while in reality, it faced severe execution issues that hindered growth, resulting in investor losses.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first in 2017 for the number of securities class action settlements, showcasing its expertise and success in this field.
- Participation Instructions: Investors can visit the Rosen Law Firm website or call the toll-free number for more information, ensuring they select qualified legal counsel to protect their rights and avoid inexperienced intermediaries.
See More
PayPal Misses Q4 Expectations Amid CEO Change and Partnerships
- Missed Expectations: PayPal's total payment volume rose 7% and revenue increased 4% in Q4 2025, with adjusted EPS up 14%, yet it fell short of Wall Street expectations, leading to a stock price decline that reflects market concerns about future growth.
- Stagnant User Growth: As of Q4 2025, PayPal reported 439 million active accounts and 231 million monthly active accounts, with only a 1% growth in both metrics, indicating challenges in attracting new customers despite its first-mover advantage.
- CEO Transition Impact: The departure of CEO Alex Chriss and the appointment of HP's Enrique Lores have raised market interest; however, this change failed to prevent a drop in stock price, highlighting investor uncertainty regarding the company's future direction.
- Attractive Valuation: With a current P/E ratio below 9, PayPal's stock is considered undervalued despite cautious market sentiment, and analysts suggest that its brand strength and dominant position in digital payments may present a buying opportunity for investors at this price point.
See More
PayPal's Stock Continues to Decline, Outlook Worrisome
- Stock Decline: PayPal's share price has dropped 23% over the past 12 months, reflecting market pessimism regarding its future performance, particularly as new CEO Lores faces significant challenges.
- Weak Revenue Growth: Revenue is projected to rise only 2.9% in 2026, while earnings per share may decline by a mid-single-digit figure, indicating difficulties in regaining growth amid intense competition and weaker consumer spending.
- Investment and Buyback Plans: Despite profit pressures, PayPal plans to spend $6 billion on stock buybacks in 2026, equating to 14% of its current market cap, which provides some support for EPS and demonstrates management's focus on capital allocation.
- Cautious Market Sentiment: Although PayPal's P/E ratio has fallen to 8.9, attracting value investors, historical data shows that buying at lower prices can still lead to losses, suggesting that investors should remain cautious until fundamentals improve.
See More
US Navy Seizes Iranian Cargo Ship, Sparking Market Concerns
- Navy Seizure Incident: President Trump announced the U.S. Navy seized an Iranian cargo ship, leading to a cautious market sentiment as investor concerns about Middle Eastern tensions rise, causing oil prices to increase and potentially impacting consumer spending.
- Oil Price Warning: The Energy Secretary warned that gas prices could remain above $3 per gallon until next year, which would negatively affect consumers already feeling the pinch of high costs, further impacting economic recovery.
- Tech and Finance Intersection: Kevin Warsh, Trump's nominee for Federal Reserve Chair, is set for a Senate confirmation hearing, and his close ties to Silicon Valley could change the interaction between tech giants and the Fed, influencing future monetary policy.
- Automotive Dealer Consolidation Trend: Data shows that the top 150 auto dealers in the U.S. increased their market share from 21.2% a decade ago to 27%, reflecting the rise of mega-dealers and the struggles of smaller competitors, potentially leading to significant industry structural changes.
See More
US Navy Seizes Iranian Cargo Ship, Market Sentiment Shifts
- Navy Seizure Incident: President Trump announced that the U.S. Navy seized an Iranian cargo ship in the Gulf of Oman, shifting market sentiment to a defensive stance as investor concerns about Middle Eastern tensions rise, leading to higher oil prices and downward pressure on stock futures.
- Oil Price Warning: Amid fears of escalating tensions in the Middle East, oil prices are rising, with the Energy Secretary warning that gas prices could remain above $3 per gallon until next year, further straining consumers already facing higher costs.
- Tech Ties and Fed: Kevin Warsh, Trump's nominee for the Federal Reserve chair, will face confirmation hearings tomorrow, with his close ties to Silicon Valley raising questions about potential access for tech moguls to the Fed, a point of significant market interest.
- Dealer Consolidation: Data shows that the top 150 car dealerships in the U.S. increased their market share from 21.2% a decade ago to 27%, reflecting a trend of consolidation that benefits larger dealers like Lithia Motors and AutoNation.
See More
Kevin Warsh: Nominee for Fed Chair with Tech Savvy Background
- Wealth and Background: Kevin Warsh's financial disclosure reveals a wealth of nearly $200 million, with significant investments in companies like Palantir and stakes in various startups, indicating a strong background in tech investments that could influence Fed monetary policy.
- Expected Policy Shift: Warsh's critiques of current Fed policies, particularly regarding the $6.7 trillion balance sheet, suggest that his confirmation could lead to significant changes in Fed policy, especially in addressing inflation and economic growth.
- Technology and Economy: Warsh believes that technology will make everything cheaper, and his perspective may prompt the Fed to focus more on future productivity growth when formulating policies, potentially leading to faster non-inflationary growth.
- Connections to Tech Community: Warsh's long-standing relationships with several tech titans may lead him to adopt a more free-market and anti-regulatory stance in Fed decisions, which could impact the direction of financial regulation policies.
See More
Reminder of PayPal Class Action Lawsuit for Investors
- Class Action Notification: Rosen Law Firm reminds investors who purchased PayPal stock between February 8, 2024, and February 2, 2026, to apply to be lead plaintiffs by April 20, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: The lawsuit alleges that PayPal intentionally or recklessly misled investors during this period by claiming significant improvements in its branded checkout business, while in reality, it faced severe execution issues that hindered growth, resulting in investor losses.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first in 2017 for the number of securities class action settlements, showcasing its expertise and success in this field.
- Participation Instructions: Investors can visit the Rosen Law Firm website or call the toll-free number for more information, ensuring they select qualified legal counsel to protect their rights and avoid inexperienced intermediaries.
See More
PayPal Misses Q4 Expectations Amid CEO Change and Partnerships
- Missed Expectations: PayPal's total payment volume rose 7% and revenue increased 4% in Q4 2025, with adjusted EPS up 14%, yet it fell short of Wall Street expectations, leading to a stock price decline that reflects market concerns about future growth.
- Stagnant User Growth: As of Q4 2025, PayPal reported 439 million active accounts and 231 million monthly active accounts, with only a 1% growth in both metrics, indicating challenges in attracting new customers despite its first-mover advantage.
- CEO Transition Impact: The departure of CEO Alex Chriss and the appointment of HP's Enrique Lores have raised market interest; however, this change failed to prevent a drop in stock price, highlighting investor uncertainty regarding the company's future direction.
- Attractive Valuation: With a current P/E ratio below 9, PayPal's stock is considered undervalued despite cautious market sentiment, and analysts suggest that its brand strength and dominant position in digital payments may present a buying opportunity for investors at this price point.
See More
