PayPal: Third Point's New Position - Does Their Investment Thesis Check Out?

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About: PayPal Holdings, Inc. (PYPL)
by: Spin-Off Insights
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Spin-Off Insights
Research analyst, long-term horizon
Summary

PayPal is a dominant payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide.

The business has been growing rapidly due to their position in the secularly growing e-commerce market.

Third Point, the well-respected activist investment firm, recently invested in the company believing the shares are significantly undervalued.

We investigate each pillar of Third Point’s thesis and provide our view on PayPal's opportunities and obstacles.

Introduction

PayPal (NASDAQ:PYPL) was built in the early days by a group of Silicon Valley icons - Peter Thiel, Max Levchin, Elon Musk, and Reid Hoffman, among others (collectively referred to as the