Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Warren: PayPal is a business we understand perfectly well, which is precisely the problem — we understand it well enough to see that its castle walls are being scaled from four directions at once. This was once a wonderful business. Today it is an average one: a mature toll collector losing share in its most profitable lane, defending itself with cost cuts and share repurchases rather than with a widening moat. At $58.74, roughly 11 times earnings, it is statistically cheap. But we don't buy statistics; we buy businesses. And there is a live takeover bid — Stripe and Advent International offered $60.50 per share in mid-July, which the board rejected on July 20 — that has already pulled the price up to within 3% of the offer. Whatever margin of safety existed at $43 this spring has been arbitraged away by deal speculation.
Recent filings analysed: 8-K (2026-07-28), 10-Q (2026-07-28), 8-K (2026-05-21), 8-K (2026-05-15).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation