Why Shares of PayPal Are Rising Today
Shares of PayPal (NASDAQ: PYPL) were trading about 3.5% higher as of 12:17 p.m. ET Thursday after analysts publicly speculated about the possibility that activist investors could set their sights on the fintech company.
Recently, Bernstein analyst Harshita Rawat published a research note titled "Can an activist get involved and what can they do?" In it, Rawat points out that PayPal has not traded at prices this low since 2018, and highlights that it is being outperformed by many of its payments industry rivals.
"We are not advocating for an activist in the stock, rather highlighting what corporate actions, in our view, can drive value-creation for shareholders," Rawat wrote, recommending that PayPal make efforts on "better execution & speedier innovation through organizational changes, and [a] narrower but more focused set of priorities."
Source Fool.com
