What Offers PayPal (PYPL) a Meaningful Long-Term Optionality?

2 hours ago 1

Soumya Eswaran

Tue, January 20, 2026 astatine 7:35 AM CST 3 min read

Longleaf Partners, managed by Southeastern Asset Management, released its fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The Fund returned 3.35% successful the quarter, compared to the S&P 500’s 2.66% and the Russell 1000 Value Index’s 3.81% return. 2025 was a challenging twelvemonth for the firm, arsenic it did not person immoderate standout performers. Approximately 5% of the portfolio gained 20% oregon more, portion 35% of the S&P 500 deed that level. The wide marketplace dynamic drove the Fund’s underperformance. The steadfast focuses connected actions to fortify portfolio outcomes alternatively than chasing winners astatine the incorrect time. The steadfast reiterates that gathering a portfolio of existent companies connected discourtesy successful a play of excessive speculation volition payment each markets. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Longleaf Partners Fund highlighted PayPal Holdings, Inc. (NASDAQ:PYPL) arsenic a show detractor successful 2025. PayPal Holdings, Inc. (NASDAQ:PYPL) is simply a exertion level that enables integer payments. On January 16, 2026, PayPal Holdings, Inc. (NASDAQ:PYPL) banal closed astatine $56.88 per share. One-month instrumentality of PayPal Holdings, Inc. (NASDAQ:PYPL) was -4.88%, and its shares mislaid 38.04% of their worth implicit the past 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a marketplace capitalization of $54.337 billion.

Longleaf Partners Fund stated the pursuing regarding PayPal Holdings, Inc. (NASDAQ:PYPL) successful its 4th fourth 2025 capitalist letter:

"PayPal Holdings, Inc. (NASDAQ:PYPL) – Digital payments level PayPal was a detractor successful 2025. While the institution made existent operational advancement stabilizing and increasing transaction borderline dollars, expanding nett margins done improved outgo discipline, accelerating FCF generation, and returning important superior done buybacks the marketplace remained focused connected the deficiency of further acceleration successful Branded checkout volume, which grew successful the mid-single-digit scope portion investors were hoping for high-single-digit growth. Increased reinvestment successful selling and exertion combined with macro unit connected discretionary spending further weighed connected sentiment. Despite the stock’s underperformance, PayPal’s scale, two-sided network, and heavy transaction-level information crossed hundreds of millions of consumers and tens of millions of merchants stay underappreciated assets that supply meaningful semipermanent optionality."

Jim Cramer Notes PayPal (PYPL)’s CEO Alex Chriss “Will Get You Where You Have to Go”

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