Famed investor Michael Burry has initiated a new position in PayPal (PYPL) stock.
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Burry, whose bet against the subprime mortgage market back in 2008 was chronicled in the book and film “The Big Short,” said in his substack newsletter than he has opened a position in PYPL stock at $49 a share, making it 3.5% of his portfolio.
Burry called the payments firm a “top pick” among software-payments companies. Burry, who has a large following among retail investors, said he ranks PayPal ahead of many other software stocks, including Fiserv (FISV) and Adobe (ADBE).
No TACO Trade Here
In his latest newsletter, Burry also pushed back on the idea that the decline in software stocks this year has been another Trump “TACO trade,” which stands for “Trump Always Chickens Out.” Burry argues that the latest weakness was tied to the credit market not policy-driven volatility out of Washington, D.C.
Burry, who has bought several software stocks in recent months, including Salesforce (CRM) and Autodesk (ADSK), said he expects a near-term rebound in the group. “I do not believe the technical pressures brought on by the private credit/software debt issues are big enough to affect these stocks for much longer,” he wrote.
Is PYPL Stock a Buy?
PayPal’s stock has a consensus Hold rating among 30 Wall Street analysts. That rating is based on five Buy, 21 Hold, and four Sell recommendations issued in the last three months. The average PYPL price target of $48.48 implies 2.60% downside from current levels.
