Is PayPal (PYPL) a Turnaround Opportunity After the CEO Transition?

Is PayPal (PYPL) a Turnaround Opportunity After the CEO Transition?

Thu, August 27, 2026 at 7:20 PM GMT+3 3 min read

Greenlight Capital is an investment management firm specializing in value-oriented strategies. The letter can be downloaded here. Greenlight Capital released its second-quarter 2026 investor letter, reporting a 4.3% decline for the Partnerships and a 1.9% year-to-date gain, net of fees and expenses, compared with gains of 15.2% and 10.2% for the S&P 500 Index. The funds entered the quarter conservatively, but costly trading decisions and macro positions, particularly in gold and U.S. interest rates, weighed on results. Long positions contributed roughly 9%, offset by similar losses from shorts. The letter also highlighted concerns over speculative market conditions, using SpaceX's $1.75 trillion IPO valuation and investment-grade rating as examples of excess. Looking ahead, Greenlight is more constructive on Fed Chairman Kevin Warsh's inflation stance and expects positions to recover if inflation moderates and rates remain unchanged. Additionally, reviewing the Strategy's top holdings could help identify its best ideas for 2026.

In its second-quarter 2026 investor letter, Greenlight Capital highlighted PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. (NASDAQ:PYPL) is a leading technology platform that provides digital payment solutions for merchants and consumers. On August 26, 2026, PayPal Holdings, Inc. (NASDAQ:PYPL) closed at $61.68 per share. Over the past month, Primo Brands Corporation (NYSE:PRMB) returned 6.92%, while its shares have declined 12.02% in the last 52 weeks. Primo Brands Corporation (NYSE:PRMB) has a market capitalization of $52.88 billion, and its stock has traded within a 52-week range of $38.46 to $79.22.

Greenlight Capital stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q2 2026 investor letter:

"PayPal Holdings, Inc. (NASDAQ:PYPL) is a consumer-facing payments platform with over 400 million active customers around the world. PYPL has long been viewed as being on the wrong side of the shift toward newer payment methods like Apple Pay, Shop Pay and Buy-Now-Pay-Later. After disappointing fourth-quarter results and a CEO transition, the stock sold off, creating an opportunity for us to acquire our position at an average price of $43.53. We believe PYPL's collection of payment assets is worth substantially more than the 8x earnings we paid. PYPL ended the quarter at $43.18. Subsequent to quarter-end, Stripe and Advent International reportedly made a joint offer to buy PYPL for $60.50 per share."

PayPal Holdings, Inc. (NASDAQ:PYPL) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of the second quarter which was 76 in the previous quarter. While we acknowledge the potential of PayPal Holdings, Inc. (NASDAQ:PYPL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered PayPal Holdings, Inc. (NASDAQ:PYPL) and shared Jim Cramer's views on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.