In this article, we discuss the 5 famous tech stocks that are trading at a discount today. If you want to read about some more tech stocks that are trading at bargain prices, go directly to 10 Famous Tech Stocks Trading At Discount Today.
5. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 110
Decline in Share Price Over Past Six Months: 53.44%
PayPal Holdings, Inc. (NASDAQ:PYPL) provides digital payments services. As the stock slides amid a larger lull around growth equities, the company has been busy beefing up initiatives in the crypto sector to take advantage of the rapid growth in the industry. The firm plans to raise fees on crypto trades of over $200 to “remove the complexity of percentage-based calculations for the consumer”. It has also been actively helping war-weary Ukrainians use the platform to transfer money across borders, highlighting the role crypto could play in conflicts of the future.
On March 30, Goldman Sachs analyst Michael Ng initiated coverage of PayPal Holdings, Inc. (NASDAQ:PYPL) stock with a Buy rating and a price target of $144, backing the firm to deliver earnings growth of more than 20% beyond 2022. The analyst cited the digitization of payments and ecommerce growth as some of the main growth drivers of the firm.
At the end of the fourth quarter of 2021, 110 hedge funds in the database of Insider Monkey held stakes worth $9.9 billion in PayPal Holdings, Inc. (NASDAQ:PYPL), compared to 123 in the preceding quarter worth $12.8 billion.
In its Q3 2021 investor letter, RGA Investment Advisors LLC, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:
Stocks move with far more volatility to both the upside and downside than do the businesses themselves. Great businesses often go long periods of time without moving at all in the market, and then make large moves in very sudden fashion. Some people may try to anticipate exactly when these large moves will happen, but we think that is far more akin to astrology than sound business analysis…
We have owned shares in PayPal Holdings, Inc. (NASDAQ:PYPL) since the company was spun off from eBay in 2015. In aggregate, price has moved upward, quite powerfully during our tenure; however, this upside was essentially achieved in two somewhat brief pulses that cover less than half of our tenure with the stock. The rest of the time, price chopped around in ranges. These ranges are periods of tension, where the fundamentals continue to chug along but the stock price must digest. Some periods of tension are fairly quiet, while others include both steep up and down moves along the way. Some end up being brief resets, others might persist for two plus years. The key underlying truth is that if the business remains sound, and in the case of PayPal Holdings, Inc. (NASDAQ:PYPL), we think it is incredibly sound, the journey of rising stock prices will once again resume when the stock is ready. We are not market timers and thus cannot be sure as to when a stock might be ready, but value is inevitably the force that operates on a company’s stock and that force cannot help but exert its will over longer periods of time.
Thus, as we sit here today, a new year brings new opportunities, and the forward return profile of our portfolio looks as strong as it has been in some time.”
