Michael Burry Increases PayPal Stake, Citing Undervaluation and Strong Fundamentals

Key Facts

1Renowned investor Michael Burry increased his position in PayPal at $40.98 per share.

2Burry views PayPal as having strong fundamentals, including significant owner earnings, low debt, and ongoing buybacks.

3Burry critiqued the market's focus on AI, arguing that the hype is leading to overlooked value stocks.

In a move reflecting a return to value-driven strategies amidst tech sector volatility, renowned investor Michael Burry has increased his position in PayPal at $40.98 per share. Burry contends that the company possesses robust fundamentals currently overlooked by the broader market, including significant owner earnings and low debt levels, bolstered by ongoing share buybacks. Furthermore, Burry critiqued the market's intense focus on Artificial Intelligence, arguing that the prevailing hype has led investors to neglect high-quality value stocks with stable cash flows.

Burry's accumulation comes as payment processors face heightened competition; market data shows PayPal trading at lower valuation multiples compared to peers like Block and Visa. Per market data, PayPal's aggressive share repurchase program is designed to enhance shareholder value despite decelerating revenue growth, a strategy that aligns with Burry’s focus on cash-generative assets. Analysts suggest the current valuation may reflect exaggerated fears regarding margin erosion from competitors like Apple Pay and Google Wallet.

At the close on June 12, 2026, PYPL stood at $41.53, trading slightly above Burry's reported entry point. Traders are monitoring support levels near $40.87, the recent session low, for signs of a definitive price floor. Looking ahead at the economic calendar, while there are few immediate sector-specific catalysts, the recently reported US Inflation Rate of 4.2% (YoY) may continue to drive interest toward the cash-flow-heavy value plays favored by Burry in a high-rate environment.