Key Points
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Investor Michael Burry, known for his contrarian views, is buying several software stocks, believing recent market concerns about software-as-a-service (SaaS) are overblown.
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Burry recently initiated a position in PayPal, comprising 3.5% of his portfolio, as it trades at just 9.6 times forward earnings, and he deems it undervalued amidst competition.
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Burry also plans to buy Salesforce, which holds a 23% market share in global CRM, and MSCI, which offers analytics tools for investors, as he sees opportunities despite AI-related market fears.
Michael Burry, the legendary investor portrayed in the film The Big Short, has expressed confidence in several key software stocks despite recent sell-offs attributed to fears surrounding AI. He has initiated a new position in PayPal (NASDAQ: PYPL), which is currently trading below $50 per share and is down significantly from its pandemic-high of over $300. Burry believes that PayPal’s prudent compensation policies and its vast user network shield it from disruption by AI technologies.
Additionally, Burry plans to start positions in Salesforce (NYSE: CRM), which has a robust 23% share of the global CRM market, and MSCI (NYSE: MSCI), a provider of tools for institutional investors. Salesforce’s stock has dipped almost 30% this year, while MSCI’s stock is slightly up year-to-date. Burry argues that large, established companies still hold significant advantages, as they can leverage existing customer relationships and resources to navigate the evolving landscape.
