20 Best Cryptocurrency Stocks to Buy According to Hedge Funds

5. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 87

PayPal Holdings, Inc. (NASDAQ:PYPL) enables digital payments on behalf of merchants and consumers globally. The firm was founded as the world’s first digital payment platform and has been revolutionizing commerce globally for over 25 years. It classifies its revenues into two categories, transaction revenues and revenues from other value-added services. PayPal entered the crypto domain in October 2020 when it launched a new service to enable people to hold, buy, and sell cryptocurrency.

PayPal has a unique advantage that is difficult to replicate. It stands as one of the only players with both sides of the network, consumer as well as merchant, at scale globally. The firm continues to build more omnichannel capabilities while bringing more value-added services for consumers and merchants to the table. Apart from the distinctiveness and the motivation to drive long-term growth, the firm has strong financial results to offer.

Highlights from the fiscal second quarter include net revenues increasing 8% to $7.9 billion, transaction margin dollars increasing 8% to $3.6 billion, total payment volume increasing 11% to $416.8 billion, and payment transactions increasing 8% to 6.6 billion. The firm recorded its best transaction margin dollar growth since 2021. As of year-end 2023, PayPal has 426 million active consumer and merchant accounts, $1.53 trillion total payment volume, and 25 billion payment transactions. Hence, PayPal is positioned well for long-term durable, and profitable growth.

Based on the strength across PayPal Holdings, Inc. (NASDAQ:PYPL), the company has also raised its guidance for growth in transaction margin dollars and earnings per share. The firm operates in a $6 trillion-plus global e-commerce market that benefits from the current digitization of payments and is hence, poised to grow. As of Q2 2024, PayPal Holdings, Inc. (NASDAQ:PYPL) was held by 87 hedge funds thereby ranking on our list. Citadel Investment Group was the top shareholder with a stake worth $469 million.