Burry Buys PayPal at $40.98 While Shares Trade at 7.7x P/E
PYPL•Michael Burry added to his PayPal position at $40.98 as the stock trades at a forward P/E of 7.7 after falling more than 28% year-to-date. He argues the market is overlooking PayPal during the AI craze and says a 7–8x earnings multiple with aggressive buybacks makes it attractive to private equity and strategic acquirers.
1. Michael Burry Adds to PayPal Position
Veteran investor Michael Burry increased his PayPal stake at $40.98 per share, citing a broader rotation into overlooked large-cap stocks. He believes the market has prematurely discounted PayPal’s long-term earnings power.
2. PayPal’s Valuation and Stock Performance
PayPal shares have declined over 28% year-to-date and currently trade at a forward price-to-earnings ratio of 7.7. The low valuation contrasts with its consistent buyback program and solid free cash flow.
3. Attractiveness to Private Equity and Strategic Buyers
At a 7–8x earnings multiple, PayPal’s valuation is seen as compelling for both private equity firms and strategic acquirers. Management’s aggressive repurchase plan further enhances intrinsic value per share at current levels.
