In this article, we will list the 3 best stocks in the Michael Burry stock portfolio. Please visit Michael Burry Stock Portfolio: Top 8 Stock Picks in 2026 if you would like to see the extended list and the methodology behind it.
Michael Burry of Scion Asset Management
3. Veeva Systems Inc. (NYSE:VEEV)
In April, Michael Burry told his followers on Substack that he had bought a position in Veeva Systems Inc. (NYSE:VEEV) that was slightly larger than a low normal position he had bought in another software company. The admission was part of a larger note on the struggling software companies and the AI craze on Wall Street. Burry is taking a position in these stocks even as AI disruption triggers a selloff in this sector. Investors are backing artificial intelligence winners, there is mega-cap momentum, and the market has been salivating at the prospect of increasing computing power. In this broader context, the legacy software and payments names have been struggling to attract stock market capital.
However, Michael Burry thinks that companies like Veeva Systems Inc. (NYSE:VEEV) have been hit by fear, forced selling and broad skepticism rather than any issue with the actual fundamentals. The disconnect, between the thesis provided by Burry, and the Wall Street bears, is where the money can be made. Veeva provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, the Middle East, Africa, and Latin America. Burry wrote that he believed a “reflexive positive feedback loop” was the principal reason why software stocks were trending lower. The drop in share prices, the stress from debt connected to software companies, and the nervous positioning all seemed to have fed into each other.
2. Adobe Inc. (NASDAQ:ADBE)
In a post on Substack in April, Michael Burry confirmed to his followers that he had maintained a position in Adobe Inc. (NASDAQ:ADBE) stock as part of a larger bet on struggling software names in the AI age. Burry, in his post, took a position which highlighted that if software stocks were going down because sales were going down, customers were leaving, and competition was cutting into profits, then investors should stay away. But if prices were going down because of technical pressure and fear-based selling, that was different. The Burry thesis on software underlined that investors who were willing to get in early on these names were buying strong companies at prices that were more affected by fear than by fundamentals.
Adobe Inc. (NASDAQ:ADBE) operates as a technology company worldwide. It offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content. The firm serves photographers, video editors, graphic and experience designers, game developers, content creators, students, marketers, business owners, knowledge workers, and consumers. Burry has stripped the registration of his hedge fund with the securities commission in the United States and now shares his investment advice with followers mostly on social media through a series of articles on the Substack platform.
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.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
