When big-named investors make their positions public, the investing public tends to take notice. That certainly appears to be the case today with PayPal (NASDAQ:PYPL), as Altimeter Capital’s Brad Gerstner announced a position in the fintech giant via a post on X (formerly Twitter). Shares of PYPL stock have moved slightly lower in today’s market, and this fintech company does lag the overall Nasdaq at the time of writing.
Gerstner is a notable investor in other major tech companies and has been very right on his previous calls. One of his major positions has been in social media giant Meta Platforms (NASDAQ:META). And after sending a letter to Mark Zuckerberg asking for greater efficiency (which coincided with Zuckerberg’s announced “year of efficiency”), Gerstner has been credited with some big wins as an activist voice in many companies.
Perhaps something similar is on the horizon with PayPal. After all, this fintech giant remains well below its previous all-time highs, and there are plenty of levers to be pulled here.
Let’s dive into what investors are watching when it comes to PayPal and this latest investor announcement.
PYPL Stock Slightly Higher on Key Investor Announcement
First of all, it should be noted that initial reports on Gerstner’s stake in PayPal suggest it’s not a major holding for the hedge fund. Gerstner himself has called his position “small,” suggesting this could be a diversification play or a means of generating more exposure to the fintech sector, which has underperformed other high-growth areas of the market.
That said, a stake is a stake, and existing investors will take what they can get. Gerstner has hinted at the potential for some activist rhetoric, saying he may become a larger investor in PayPal, depending “on how convinced we become that mgmt & the board are truly committed to getting fit – to real change.”
That’s a key statement investors may want to pay attention to. Gerstner appears to believe in the company but also believes that radical transformation is needed for PayPal to hit its stride and become the growth stock it once was. That’s music to the ears of many and makes this a stock to watch.
Admittedly, I’ll likely be following PayPal more closely following this announcement, and perhaps that’s Gerstner’s goal. I think PayPal could be one of the key large-cap tech stocks to watch in 2024 moving forward.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
