5 Trending Stocks on Tuesday

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

Number of Hedge Fund Holders: 97

Share of PayPal Holdings, Inc. (NASDAQ:PYPL) fell more than three percent this morning after Susquehanna analyst James Friedman downgraded the digital payments giant from “Positive” to “Neutral.”

Friedman referred to the higher costs associated with the company’s rapidly growing payment solutions platform Braintree. The analyst thinks Braintree could weigh on PayPal’s overall results in the coming quarters. He also trimmed his price target for PayPal Holdings, Inc. (NASDAQ:PYPL) from $115 per share to $110 per share.

Meanwhile, asset management firm Mayar Capital also mentioned PayPal Holdings, Inc. (NASDAQ:PYPL) in its second-quarter 2022 investor letter, stating:

“This quarter, we bought shares in PayPal (NASDAQ:PYPL), the payments platform. PayPal has been one of the more high-profile victims of the market’s brutal ruthlessness over the past few months, and the stock fell by over two thirds between its peak in July to the beginning of March this year. As we progressed PayPal through the Mayar Checklist Process, we identified a business with a leadership position in a structurally growing market.

The company benefits from certain network effects, and faces several competitive threats at the same time. As the business profited from the move to online retail during the pandemic, as well as from the stimulus cheques handed out in the US, the stock price soared to absurd levels. As so often happens, however, the market had overcorrected by February and this quarter was offering prospective shareholders prices that assumed essentially zero growth in the business. When life gives you irrational sellers, make lemonade!”

You can also take a peek at 10 Best Media Stocks To Buy and 10 Best Cyclical Stocks for Inflation.

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