Technology

Loeb’s Third Point takes new stake in PayPal

Billionaire activist investor Daniel Loeb said in a letter to investors on Monday that his Third Point LLC hedge fund has taken a stake in PayPal Holdings Inc. The hedge fund did not disclose the size of its stake in the online payments firm.

“Consumers love PayPal because it enables hassle‐free, one‐touch checkout across millions of online merchants,” Loeb stated. According to the letter, Third Point decided on the move since it believes PayPal has a “high and rising market share, untapped pricing power, and significant margin expansion potential,” comparing the company to internet giants Amazon and Netflix.

The hedge fund noted it expects PayPal’s shares to potentially hit $125 before the end of next year. PayPal increased 0.08% to $87.60 at 5:59 pm CET.

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