Michael Burry Buys More of This Stock Despite a 71% Collapse and CEO Departure: Here's Why
u/Useful_Tangerine4340 ·
Reddit — r/ValueInvesting
· June 16, 2026 at 12:49
· ⬆ 64 pts
· 💬 64 comments
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Summary
The post reports Michael Burry adding to his Fiserv (FI) position after a 71% price collapse and the sudden CEO departure, citing the stock’s 10-year low and intact core business.
The author’s thesis is that Burry’s purchase signals a value opportunity: buying cheap is key and the sharp selloff is an overreaction.
Quality assessment: This is more of a news summary / speculation than original deep-dive DD; it relies on Burry’s reputation rather than fresh analysis.
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In a Monday trading post on Substack, Burry said financial technology company Fiserv, which is down 55% over the past five years, is a 'dog of a stock, now under $48 from $226 early last year.'
Burry remained bullish on the Fiserv stock while highlighting that the current stock price is at a 10-year low. It also gapped down by over 3% eight times and more than 10% three times over the past 18 months, he added. On Monday, the stock gapped down about 8% and closed 10% in the red after CEO Mike Lyons' sudden exit, which Burry believes is a 'thesis violation,' but it does not mean sell, but re-evaluate.
'In something like this, buying very cheap is important,' Burry noted, adding that the company's core business remains intact despite the sharp selloff.
Burry used the selloff to add to his position.
Stock is at a 10-year low (~$48), down 55% over 5 years and 71% from highs; CEO exit caused an 8% gap down. Burry’s addition after the selloff implies the valuation is attractive relative to the company’s core earnings power. A contrarian value play betting on mean reversion; risk is the CEO departure may signal deeper issues. Further operational deterioration, negative earnings revisions, or additional insider selling could invalidate the thesis.
This Reddit post, published June 16, 2026,
features u/Useful_Tangerine4340
discussing FI.
1 trade idea extracted by AI with direction and confidence scoring.