PayPal stock jumped over 12% in the past week after Big Short's Michael Burry disclosed opening a 3.5% position in the payments giant amid growing chatter about activist involvement and competition from X Money.
Burry, who is known for making a winning bet against the US housing industry during the 2008 crisis, prioritises market mechanics over the near-term business landscape. He thinks that a sell-off in software stocks due to pressure on the private credit market has led to mispricing for PayPal. Burry forecast a potential annual return of more than 15%.
