4. PayPal Holdings, Inc. (NASDAQ:PYPL)
Elliott Management’s Stake Value: $69.84 million
Percentage of Elliott Management’s 13F Portfolio: 0.8%
Number of Hedge Fund Holders: 97
PayPal Holdings, Inc. (NASDAQ:PYPL) is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers. Elliot Management added PayPal Holdings, Inc. (NASDAQ:PYPL) to its portfolio in Q2 2022, holding 1 million shares worth $69.84 million, representing 0.8% of the total portfolio.
Raymond James analyst John Davis upgraded PayPal Holdings, Inc. (NASDAQ:PYPL) to Outperform from Market Perform with a $123 price target on September 14. After suffering through several consecutive challenging quarters of meaningful negative estimate revisions, the analyst finally sees PayPal’s depressed multiple to grind higher as estimates appear to rise. Davis also states that the Street’s estimates do not necessarily reflect the incremental revenue from rising rates within OVAS, which could potentially offset any macro related transaction revenue weakness in the coming year.
On September 21, BofA analysts added PayPal Holdings, Inc. (NASDAQ:PYPL) to the firm’s “US 1 list”. The list represents a collection of the firm’s best investment ideas that are drawn from the universe of Buy-rated, U.S.-listed stocks covered by BofA Global Research.
PayPal Holdings, Inc. (NASDAQ:PYPL) was found in the 13F holdings of 97 hedge funds in the second quarter. Their total stake value in the company was $5.2 billion. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in PayPal Holdings, Inc. (NASDAQ:PYPL), with 17 million shares worth more than $1.2 billion.
Mayar Capital, an asset management firm, mentioned Paypal Holdings, Inc. (NASDAQ:PYPL) in its second quarter 2022 investor letter. Here’s what they said:
“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!”
