PYPL Stock Climbs Overnight: Michael Burry Adds To PayPal Bet, Says 'The Body Has Yet To Show'

‘The Big Short’ investor Michael Burry revived his bullish bet on the payments company, noting in a post on Substack that he had added to his position.

• Burry said that he was adding to his position in PayPal as part of a broader rotation into stocks he believes the market has overlooked amid the AI craze. 
• The veteran investor also noted that PayPal’s price in specific had been pushed low enough that private equity firms and strategic acquirers would find it attractive.
• PYPL stock is trading at a forward price-to-earnings ratio of 7.7, according to the latest data from Koyfin.

Shares of PayPal Holdings Inc. (PYPL) edged higher in the overnight session on Sunday, garnering retail attention after having lost significant value over the past year.

Meanwhile, ‘The Big Short’ investor Michael Burry revived his bullish bet on the payments company, noting in a post on Substack that he had added to his position.

“I added to PayPal (PYPL) at $40.98,” he said, while also commenting on how the market had written off the stock prematurely. “The market has been attending PayPal’s wake for years now, though the body has yet to show,” Burry said.

Burry’s Latest PayPal Rationale

The veteran investor, who is best known for predicting the 2008 housing crash, said he was adding to his position in PayPal as part of a broader rotation into stocks he believes the market has overlooked amid the artificial intelligence craze.

“The market continues to punish the stocks of large, well-established businesses with significant owners earnings, little debt, and large buybacks, which are accretive to intrinsic value per share at current levels,” Burry said in his post.

He argued that while markets are currently favoring AI-linked companies and overlooking stronger names, he warned that large language models are not true AI, adding that no one is using true AI yet.

“Companies are spending hundreds of billions, even trillions, of dollars on making language models the last search engine one will ever need. There is no evidence of anything more that, and there is plenty of evidence that the training of these search engines is hitting diminishing returns well before profitability, let alone return of capital,” he said.

Burry also noted that PayPal’s price in specific had been pushed low enough that private equity firms and strategic acquirers would find it attractive. “Has to look attractive to both PE firms and strategic acquirers at this level, 7-8x earnings and buying back stock hand over fist,” he said.

PYPL stock is trading at a forward price-to-earnings ratio of 7.7, according to the latest data from Koyfin. However, the company’s shares have lost more than 28% of their value so far in 2026.

Burry’s Long-Term Bull Case On PayPal

Burry has long maintained a bullish outlook on PayPal, noting in earlier posts that his investment thesis centers on its ability to create long-term shareholder value.

He has cited PayPal’s buyback efforts, debt-free status, and restructuring efforts as strong catalysts for future profitability and return-on-investment-driven growth.

In particular, Burry has touted PayPal’s payments platform Venmo as central to the bull case that would be “a pawn for value realization.”

PYPL Stock: Retail Stance

On Stocktwits, retail sentiment around PYPL declined from ‘extremely bullish’ to ‘bullish’ territory over the past 24 hours amid ‘high’ message volumes. The stock was also among the top trending tickers on the platform at the time of writing.

One bullish user account said that Burry’s PYPL addition was worth paying attention to, adding that “When the guy who called the housing collapse starts accumulating, you take note.”

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Another bullish user said, “trending because of a maximum of undervaluation.”

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