Newark-based BlackBird Financial LP, a value-focused hedge fund founded by Judah Spinner, on Tuesday announced it has accumulated a significant ownership position in PayPal Holdings, Inc. The firm is betting on a wide disconnect between PayPal’s durable competitive position and its current stock market valuation.
Spinner characterized PayPal, the global payments platform serving over 400 million accounts, as a “classic case of a dominant, cash-generative franchise that has fallen out of favor with the market just as its underlying economics are quietly improving.”
The hedge fund founder publicly voiced strong support for PayPal’s President and CEO, Alex Chriss, and his strategy centered on disciplined capital allocation and a renewed focus on profitable growth.
“Alex Chriss strikes us as the right kind of operator for this stage of PayPal’s life,” Spinner said. “He is prioritizing profitable growth, trimming fat where necessary, and returning excess cash to shareholders instead of chasing empire-building projects.”
BlackBird Financial’s thesis is heavily supported by PayPal’s pivot toward a more shareholder-friendly approach, combining mid-teens earnings growth with significant cash returns.
In the last 12 months, PayPal returned nearly $6 billion to shareholders, retiring approximately 78 million shares. The company has also authorized a new $15 billion repurchase program and, earlier in 2025, initiated its first-ever regular quarterly dividend of $0.14 per share.
Spinner believes that these ongoing repurchases are highly accretive at today’s share price, stating, “We are enthusiastically in favor of PayPal buying back its own stock at current levels.”
Beyond the financial discipline, Spinner pointed to PayPal’s “under-appreciated strategic position” in the evolving AI-driven commerce landscape. He highlighted recent partnerships with technology platforms like OpenAI and Google, which are embedding PayPal’s payment infrastructure deeper into next-generation shopping experiences. Furthermore, properties like Venmo continue to demonstrate growth and monetization potential.
“Despite all the noise around newer fintech names, PayPal remains one of the few scaled, trusted payments brands that merchants and consumers already use every day,” Spinner added. He concluded that the combination of refocused management, a disciplined capital return policy, and a powerful global network will be a “boon for PayPal shareholders in the decade ahead.”
BlackBird Financial, a hedge fund that manages capital for wealthy families from its New Jersey base, follows a concentrated, long-term investment philosophy modeled on the early Buffett partnerships. The firm stated it does not currently anticipate seeking board representation at PayPal.
