Michael Burry Stock Portfolio: Top 3 Stock Picks in 2026

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1. PayPal Holdings, Inc. (NASDAQ:PYPL)

In a Substack post from April, Michael Burry said he initiated a new position in PayPal Holdings, Inc. (NASDAQ:PYPL), amounting to 3.5% of his portfolio. Per the legendary investor, the stock was one of his favorites in the software payments sector. In the note, Burry also called the recent software sell-off a “reflexive positive feedback loop,” due to declining software stock prices and changing market demand for their debt, which, according to him, reflected pressure in private credit, which had a lot of exposure to software. He also underlined that believed that these conditions would not last long for the sector.

PayPal Holdings, Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments for merchants and consumers worldwide. The company operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources. The stock has suffered in recent years because of the rise of AI and the popularity of alternative payment methods like Apple Pay and Google Wallet. However, the firm has retained a growing and loyal customer base over the years.

While we acknowledge the potential of PYPL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PYPL and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Chris Rokos Stock Portfolio: Top 10 Stock Picks and Growth Stock Portfolio: 12 Stock Picks by Carl C. Icahn.

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