5 Best Growth Stocks to Buy According to Ray Dalio

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

Number of Hedge Fund Holders: 97

PayPal Holdings, Inc. (NASDAQ:PYPL) is an American fintech firm that provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. Ray Dalio owns 1.26 million shares of PayPal Holdings, Inc. (NASDAQ:PYPL) as of the second quarter of 2022, worth $88.5 million. Dalio boosted his stake in the company by 1009% in Q2 and PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the best growth stocks in his portfolio. 

On September 26, Canaccord analyst Joseph Vafi noted that despite a tough macro backdrop he sees the upcoming Pay with Venmo launch on Amazon as the latest positive catalyst for PayPal Holdings, Inc. (NASDAQ:PYPL) shares. He reiterated a Buy rating and a $160 price target on PayPal Holdings, Inc. (NASDAQ:PYPL) shares.

According to Insider Monkey’s data, 97 hedge funds held stakes worth $5.2 billion in PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of Q2 2022, compared to 100 funds in the prior quarter worth $6.2 billion. D E Shaw is a notable position holder in the company, with 8.5 million shares valued at $595.6 million. 

Here is what Lakehouse Capital specifically said about PayPal Holdings, Inc. (NASDAQ:PYPL) in its August 2022 investor letter:

“Lastly, we’ll wrap things up with a comment on our decision to exit our remaining stake in PayPal Holdings, Inc. (NASDAQ:PYPL), which we had already meaningfully reduced throughout the year. We had owned PayPal since the Fund’s inception as we believed it was well placed to continue gobbling up share in online payments, which in turn, was gaining share from the total payments pie. The company also possessed numerous opportunities to grow beyond its core platform, with the ability to add new tools and functionality (crypto offerings, Pay with Venmo, and Buy Now Pay Later etc) and enjoyed significant competitive advantages from its large two-sided network. The company had been performing well and business momentum accelerated during the pandemic. This led management to provide some ambitious growth targets at its investor day in 2021 calling for 15% user growth and 20% revenue growth on an annualized basis over the next five years.”

You can also take a look at Best Stocks For Dividends and 13 Best Cybersecurity Stocks To Buy

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