Burry eyes Salesforce after software plunge
Source: cnbc.com
TL;DR
- Michael Burry announced a new stake in PayPal and plans positions in Salesforce amid an AI-driven software stock sell-off.
- He holds Autodesk and Veeva Systems, ranks PayPal highly in software-payments based on compensation, AI adoption, and earnings valuation.
- Burry views the sell-off as driven by temporary credit issues, not policy or AI disruption, signaling buying opportunities.
The story at a glance
Michael Burry, the "Big Short" investor, disclosed buying PayPal shares and plans to add Salesforce and MSCI after a sharp sell-off in software stocks like Salesforce. The decline stems from AI fears and tighter credit for software firms. This comes as Burry shifted from bearish AI bets to selective longs in beaten-down names.[[1]](https://stocktwits.com/news-articles/markets/equity/michael-burry-buys-pypl-at-49-says-software-selloff-not-taco-trade/cZJvgB1RIDd)[[2]](https://michaeljburry.substack.com/p/trading-post-wednesday-april-15-2026)
Key points
- Burry initiated a 3.5% portfolio position in PayPal (PYPL) at $49, calling it a top pick in software-payments over Fiserv and Adobe.[[1]](https://stocktwits.com/news-articles/markets/equity/michael-burry-buys-pypl-at-49-says-software-selloff-not-taco-trade/cZJvgB1RIDd)
- Holds positions in Autodesk (ADSK) and Veeva Systems (VEEV); plans to initiate in Salesforce (CRM) and MSCI, avoiding private credit exposure.[[1]](https://stocktwits.com/news-articles/markets/equity/michael-burry-buys-pypl-at-49-says-software-selloff-not-taco-trade/cZJvgB1RIDd)
- Software sell-off tied to "reflexivity between software credit and stocks," a temporary technical factor per Burry's Substack post.[[3]](https://michaeljburry.substack.com/p/trading-post-monday-april-13th)
- Dismisses it as a "TACO trade" (Trump policy reversal); sees value after AI disruption fears crushed valuations.[[1]](https://stocktwits.com/news-articles/markets/equity/michael-burry-buys-pypl-at-49-says-software-selloff-not-taco-trade/cZJvgB1RIDd)
- Sector context: Salesforce down over 30% in 2026 YTD amid AI agent worries; broader software like Adobe, ServiceNow hit hard.[[4]](https://www.cnbc.com/2026/04/09/jim-cramer-tech-stocks-diverge.html)
Details and context
Burry's move follows his deregistration of Scion Asset Management in late 2025, ending 13F filings; he now shares trades via paid Substack "Cassandra Unchained."[[2]](https://michaeljburry.substack.com/p/trading-post-wednesday-april-15-2026) Previously bearish on AI via puts on Palantir and Nvidia, he now targets software names with strong owners' earnings and low AI disruption risk.
The sell-off accelerated last week from credit tightening—software firms face higher borrowing costs amid rate hikes and AI capex fears—not fundamental collapse. Burry argues credit impact is small and reversing, creating a rebound setup.
Salesforce directors bought shares in March at ~$195 amid 27% YTD drop then; stock now lower, aligning with Burry's dip-buy thesis.[[5]](https://www.msn.com/en-us/money/topstocks/software-stocks-keep-getting-crushed-2-places-where-insiders-are-buying-the-dip/ar-AA1ZtWOY)
Key quotes
- "Today I opened a new position for about 3.5% of my portfolio in PayPal common stock at $49.375." — Michael Burry, Substack post.[[1]](https://stocktwits.com/news-articles/markets/equity/michael-burry-buys-pypl-at-49-says-software-selloff-not-taco-trade/cZJvgB1RIDd)
- "The reflexivity between software credit and software stocks has been a main driver... but is temporary." — Michael Burry, Substack.[[3]](https://michaeljburry.substack.com/p/trading-post-monday-april-13th)
Why it matters
Software stocks represent a huge market chunk, and Burry's pivot from AI shorts to longs could signal rotation back if credit eases.
Investors get a contrarian cue on beaten-down names like Salesforce, potentially yielding outsized returns post-sell-off.
Watch Burry's next Substack for trade updates and Q2 software earnings for AI adoption proof, though his plans remain unexecuted.[[1]](https://stocktwits.com/news-articles/markets/equity/michael-burry-buys-pypl-at-49-says-software-selloff-not-taco-trade/cZJvgB1RIDd)