Is PayPal (PYPL) a Turnaround Opportunity After the CEO Transition?
Greenlight Capital, a value-oriented investment firm, recently released its second-quarter 2026 investor letter, which included an analysis of PayPal Holdings, Inc. (NASDAQ:PYPL). The letter revealed that the stock sold off following disappointing fourth-quarter results and a CEO transition, presenting an opportunity for Greenlight to acquire its position at an average price of $43.53.
Greenlight believes PayPal's collection of payment assets is worth more than the 8x earnings paid for the shares. The stock ended the quarter at $43.18. In addition to Greenlight's analysis, the letter also mentioned that Stripe and Advent International made a joint offer to buy PYPL for $60.50 per share. Greenlight Capital does not consider PYPL to be among the 40 most popular stocks among hedge funds, as 60 hedge fund portfolios held the stock at the end of the second quarter, down from 76 in the previous quarter.
While acknowledging the potential of PayPal Holdings, Inc. (NASDAQ:PYPL) as an investment, Greenlight Capital believes AI stocks offer greater upside potential and carry less downside risk.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
