Activist Investor Buys PayPal Stock. Does This Mean It's a Cheap Stock to Buy Now?
Shares of PayPal Holdings (NASDAQ: PYPL) got a boost on Wednesday after Bloomberg reported that activist investor Elliott Management is in the process of acquiring a large stake in the company.
When activist investors buy stocks, it's normally for two related reasons. First, they believe the stock is undervalued. And second, they believe the company is being mismanaged (which is often why the stock is undervalued).
Here's why Elliott Management might believe these things about PayPal. And, more important, here's why Elliott Management might be right.
Source Fool.com
