Stripe and Advent reportedly team up to bid for battered PayPal. Michael Burry says the offer isn’t enough.
Reports have emerged that Stripe and Advent International are collaborating to acquire PayPal. The market views this news as a catalyst for stock price increases, leading to a rally in pre-market trading.
News related to the acquisition is acting as a strong momentum. In recent days, the stock price has shown volatility around the $56 mark while attempting to trend upward, and the participation of a strong player like Stripe is a very attractive factor. However, it is important to note that there are opinions suggesting that the acquisition offer price proposed by Michael Burry is insufficient.
If the stock price rises and reaches the resistance level of $49.50, I will take profits at $50.25. Conversely, if the support level of $45.50 is breached and the price reaches $44.50, I will cut losses.
1) PYPL (2026-07-31): The keyword 'Stripe' overlaps with past similar success cases, aligning with the core driving force of this transaction. 2) VEEE (2026-07-16) and LRCX (2026-07-06): While there is no direct similarity, they are noteworthy top performance cases for reference.
We accurately captured the key catalyst of the acquisition rumor and positioned ourselves well for entry. The forecasted return was conservatively set at 2.1%, but the actual result significantly exceeded this estimate, achieving a performance of 21.7%. We confirmed that the news momentum acted much more strongly than anticipated.
We have learned that when engaging in news-based momentum trading, it is necessary to adopt a strategy that flexibly adjusts profit targets based on the strength of the news content. In cases like this, where strong acquisition-related news emerges, we will consider scenarios that extend the trend rather than opting for conservative profit-taking.