PayPal Shares Rise After Michael Burry Increases Stake, Despite Years of Decline
PayPal Holdings Inc. stock climbed on Monday after disclosures showed investor Michael Burry raised his position in the company. Shares have fallen from a 2021 peak of $300 to around $43.
BenzingaPayPal Holdings Inc. shares rose on Monday after filings showed that investor Michael Burry increased his stake in the digital payments company. The stock traded near $43 on the reported Monday, down sharply from its 2021 peak of $300.
Benzinga reported that the price increase followed disclosures of Burry's larger position. Benzinga reported that Burry has continued to add to his holdings in the company, which has posted several years of declining share prices. The same report said Burry linked the stock's weakness to slowing revenue growth, shifts in profitability, and recent chief executive changes.
Benzinga reported that Burry nevertheless views the shares as undervalued. " Benzinga reported that Burry's investment case includes the possibility that PayPal could become an acquisition target because of its consumer brand and discounted valuation. An earlier Bloomberg report cited in the Benzinga article said payments company Stripe had considered making a formal bid for PayPal.
