Michael Burry, the investor who famously bet against the housing market, disclosed a new stake in PayPal. This move signals a broader investment strategy targeting beaten-down software stocks.
In a Substack post, Burry argued that technical market factors unfairly punished these companies. He identified a feedback loop between declining equity prices and stress in private credit markets as the primary cause for the slump.
The investor views these technical pressures as temporary buying opportunities. In addition to PayPal, Burry highlighted Fiserv and Adobe as attractive targets in the current market.