Fintech, Retailers, and Electric Vehicles: What an Investor from “The Big Short” Is Betting On

Short seller Michael Burry continues to seek investment opportunities among companies whose stock prices have fallen sharply. He has increased his holdings in retailers, despite record-low consumer sentiment, and in a Chinese electric vehicle manufacturer. In addition, Burry is betting on shares of payment companies, which have fallen sharply in price over the past few years. The investor is paying particular attention to a potential buyout of Global Payments by investment funds. He believes that such a deal could validate the valuations of other companies in the sector and increase the likelihood of their acquisition. That said, Burry still considers some of them to be overvalued.

— Burry sees an investment opportunity in Fiserv stock, even though they have come under pressure due to a loss of confidence in the former management, which provided overly optimistic growth forecasts and lacked transparency in reporting financial results. In the event of a potential takeover, Burry values Fiserv shares at $100–120, compared to the market price of $50 .02. However, from a minority shareholder’s perspective, Fiserv’s stock is overvalued, according to Burry’s calculations: its current price is 60% higher than the price at which he would expect to earn a 15% annual return. The investor maintains a full position in Fiserv and notes that insiders are buying up the company’s shares, which have fallen in price.

— Burry considers PayPal shares to be particularly attractive buys. With the stock trading around $50, he estimates that it is trading 20% below the level that would yield a 15% annual return. Burry has already invested in PayPal but has not disclosed the exact size of his position.

— Burry considers Global Payments, a fintech company that provides payment processing software and services, to be overvalued. Back in January, he criticized the company for acquiring businesses that did not generate sufficient returns. According to Burry’s estimates, Global Payments has incurred a loss of nearly $1 billion over the past 12 months, but after excluding certain expenses from its calculations, he writes, the company reports high profits.

Following a report in the Financial Times about a possible buyout of the company by investment funds, Global Payments shares rose as much as 18% and were trading at $96.84 on Friday, October 30. Burry acknowledges that new owners could cut costs and make more profitable acquisitions of other companies. However, even taking these possibilities into account, he values Global Payments shares at only $45–60. According to his calculations, purchasing a controlling stake at that price could yield an annual return of 15%, whereas at the current market price, the buyer’s expected return would be around 10%.

— Fintech firm Fidelity National Information Services (Burry ) also considers the stock overvalued. He assumes the company will continue its previous unsuccessful acquisition strategy and estimates its value in the event of a potential buyout at $18–26 per share. At the close of trading on the NYSE on Friday, October 30, 2026, the stock was trading at $38.55—45–100% or more above Burry’s valuation.

Burry reported that he had increased his investments in Chinese companies. He purchased additional shares of electric vehicle manufacturer BYD and call options on JD.com that expire in 2029. Shares of both companies have barely risen since the Hong Kong Hang Seng Index peaked in 2021. However, Burry believes JD.com is significantly undervalued. The company’s cash, net of debt, totals $24.3 billion—which is 71% of its market capitalization. Excluding these cash reserves, the market values JD.com’s business at roughly three times its annual earnings, Burry writes. At the same time, the company’s shares are trading at half the price at which an investor would expect a 15% annual return. According to Burry, there are other undervalued companies on the Hong Kong market whose financial results have significantly outperformed their stock performance for years.

“Hong Kong’s tech sector is resurfacing. It has been held underwater for too long and too deeply—despite steady profits and, in some cases, record results. Valuation multiples have narrowed again,” writes Burry.

The short seller continues to buy shares of U.S. retailers, which have fallen sharply in price over the past two years. On Friday, he increased his position in long-term call options on Sprouts Farmers Market with an expiration date in 2028 and a strike price around $100. On October 30, shares of the grocery chain were trading at $47–49, which roughly corresponds to the price at which, according to Burry’s calculations, an investor can expect an average annual return of 15%.

In addition, he continues to hold shares in companies he considers industry leaders—companies that, in his view, maintain high profitability, use capital efficiently, and possess sustainable competitive advantages: shoe manufacturer Deckers, the Birkenstock footwear brand, athletic apparel manufacturer lululemon, and the Build-A-Bear toy store chain . Sprouts, according to Burry, meets these criteria to a lesser extent but occupies its own niche in the market thanks to its stores offering fresh produce and organic goods. This, the investor believes, partly explains the company’s high return on capital.

“From 2000 to 2005, after the bubble burst, stocks of retailers that had been written off turned out to be among the market leaders in terms of returns. A straightforward business, low valuations, some inelasticity of demand, and no connection to technology, media, or telecoms,” concluded Burry.

This article was AI-translated and verified by a human editor