03. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 87
PayPal Holdings, Inc. (NASDAQ:PYPL) stands at number three on our list of seven best digital currency and payments stocks to buy now. PayPal Holdings, Inc. (NASDAQ:PYPL) continues to demonstrate its strength as a global leader in digital and mobile payments, delivering impressive financial results for Q2 2024. The company surpassed earnings expectations, reporting a non-GAAP EPS of $1.19, a 36% increase year-over-year, driven by solid growth in transaction margin dollars and revenue. PayPal Holdings, Inc. (NASDAQ:PYPL) total payment volume rose by 11% to $417 billion, and revenue grew by 9% on a currency-neutral basis. The company is making significant strides in its transformation strategy, which is aimed at long-term, sustainable growth. Key areas such as branded checkout, Braintree, and Venmo are contributing positively to PayPal Holdings, Inc. (NASDAQ:PYPL) overall performance. Branded checkout continues to grow profitably, and Braintree has returned to meaningful transaction margin dollar growth for the first time in over two years.
Venmo, a crucial part of PayPal Holdings, Inc. (NASDAQ:PYPL) ecosystem, saw an 8% increase in total payment volume, reaching $73 billion, with monthly active accounts growing by 5%. The company is also expanding its addressable market through strategic innovations like Fastlane and new value-added services, which are expected to enhance consumer and merchant engagement across its platform. PayPal Holdings, Inc. (NASDAQ:PYPL) robust two-sided network of consumers and merchants worldwide gives it a unique competitive edge, positioning it to capitalize on the $6 trillion global e-commerce market. With continued investments in strategic growth initiatives and partnerships with major companies like Meta, PayPal Holdings, Inc. (NASDAQ:PYPL) is well-positioned for long-term growth and profitability. The company’s focus on improving customer experiences, particularly in mobile and small to medium-sized businesses, further solidifies its position as a leader in the digital payments space.
In the second quarter of 2024, there were 87 hedge funds holding positions in PayPal Holdings, Inc. (NASDAQ:PYPL), as compared to 82 in the previous quarter according to Insider Monkey’s database. The total value of these holdings is approximately $2.98 billion. Ken Griffin’s Citadel Investment Group held the largest stake among these hedge funds during this period.
Wedgewood Partners stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q2 2024 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL) detracted from portfolio performance during the quarter despite continued solid corporate performance. Revenues grew +10% (FX neutral), while adjusted operating income grew +15%, driven by higher transaction margin dollars and excellent expense discipline. The Company’s core branded payments volume accelerated compared to last quarter and continues to grow in line with e-commerce. PayPal has several investment initiatives that we expect will contribute to accelerating growth over the next few years to help take advantage of their leading market share in e-commerce payments. The Company serves over 35 million online merchants. PayPal’s large, online merchant acceptance base is a rare and crucial component to profitably monetizing payment volumes that many competitors lack. The Company trades at earnings multiples that we think are quite cheap, given its strong positioning in the long-term secular expansion of global e-commerce.”
