PayPal Holdings Inc. is shutting down PayPal Ventures, its decade-old corporate investing group, as part of a broader strategic overhaul. The company is exploring secondary-market sales of some venture stakes and has engaged Jefferies to advise on potential deals. The unit's staffing has dwindled to two people from more than 10 late last year.

"As part of our continued efforts to sharpen our focus, we are exploring strategic options for our corporate venture capital arm, PayPal Ventures," a PayPal spokesperson stated.

The decision follows leadership changes earlier this year. Former CEO Alex Chriss left in February, and Enrique Lores, previously HP's chief executive, took over. PayPal stated in a prepared remark, "The pace of change and execution was not in line with the Board's expectations." Lores has since reorganized parts of the company, including placing Venmo into its own business segment.

PayPal Ventures was created in 2016, a year after PayPal separated from eBay, and invested directly from the company's balance sheet. Across three funds, it backed more than 80 startups with total commitments exceeding $850 million. Notable investments include Plaid and Anchorage Digital, while exits include Bill.com's acquisition of Divvy in 2021.

The venture portfolio contributed positively to earnings in late 2025, adding 10 cents to PayPal's $1.53 in fourth-quarter earnings per share after reducing EPS by 4 cents in 2024. Despite this, the company is proceeding with cost reductions announced in May, targeting staff cuts totaling 20% over the next two to three years. Executives have highlighted the need to accelerate AI adoption and aim for at least $1.5 billion in savings over the same period.

Key Financial and Operational Details

PayPal Holdings Inc. stock rose on Monday after disclosures that investor Michael Burry increased his equity stake. The digital payments company has seen its shares tumble from a peak of $300 in 2021 to approximately $43. Burry attributes the recent underperformance to slowing revenue growth, changing profitability profiles, and CEO turnover. However, he sees potential in the depressed asset, stating, "The market has been attending PayPal’s wake for years now, though the body has yet to show."

Burry Accumulates Position

Burry continues to build his position in the fintech giant. His base case suggests PayPal’s consumer brand and discounted valuation could make it a compelling acquisition candidate. This outlook is supported by a Bloomberg report that Stripe considered making a formal bid for PayPal earlier this year.

Analyst Outlook

Analysts hold mixed views on PayPal’s long-term prospects. A consensus price forecast of $65.80 reflects a broad range of opinions. The most bullish forecast comes from Citizens Capital Markets, which projected the stock could reach $125 on Feb. 26, 2025. The most bearish outlook was issued by Morgan Stanley, which set a price forecast of $34 on Feb. 4, 2026.

Technical Analysis

The stock remains in a downtrend, trading about 22% below its 200-day SMA ($55.41). It is also below its 50-day SMA ($46.08) and 100-day SMA ($46.01). Monday’s strength helped it press back toward the 20-day SMA ($43.26), but the near-term trend has not flipped decisively higher. Momentum indicators suggest caution, with MACD below its signal line and a negative histogram.

Key resistance is at $46.50, near the 50-day moving-average zone. Key support is at $38.50, just above the 52-week low of $38.46. PayPal Holdings shares were up 3.82% at $43.12 at the time of publication on Monday.