Guinness Global Innovators, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund generated a total return of 21.9% (TR in GBP) in 2024, compared to the MSCI World Net TR Index return of 20.8%. 2024 turned out to be yet another successful year for stocks. For the first time since the 1990s, the S&P 500 has now produced two years in a row with returns of more than 20% (USD). Against a complex backdrop of shifting monetary policy, geopolitical instability, and disparate regional economic performance, global equities markets produced strong returns. To get an idea of the fund’s best choices for 2024, check out its top 5 positions.
In its fourth quarter 2024 investor letter, Guinness Global Innovators emphasized stocks such as PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments. The one-month return PayPal Holdings, Inc. (NASDAQ:PYPL) was -6.72%, and its shares gained 6.35% of their value over the last 52 weeks. On March 21, 2025, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $70.19 per share with a market capitalization of $69.435 billion.
Guinness Global Innovators stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q4 2024 investor letter:
“We initially acquired PayPal Holdings, Inc. (NASDAQ:PYPL) in July 2015 when eBay, a long-term holding of the Fund, spun it off as a separate entity. After a thorough evaluation of PayPal, we decided to sell our remaining position in eBay and reinvest it in PayPal. From July 2015 to October 2024, the stock delivered a total return of c.115% (in USD terms; vs MSCI World 150%). PayPal was a pioneer in digital payments and established itself as a convenient and secure alternative to traditional payment methods. As one of the first companies to offer a seamless online payment solution, PayPal quickly gained traction among both consumers and businesses, positioning itself as a dominant player in the digital payments space. For years, it enjoyed relatively limited competition, which helped the company secure a loyal user base and enjoy strong growth, exacerbated during Covid as the boom in ecommerce increased transaction volumes and sent the stock to all-time highs. In recent years, however, enthusiasm for the stock has diminished as post-pandemic volumes decreased more than expected and margins have contracted alongside. Additionally, investor concerns have mounted due to intensifying competition in its core PayPal Button business from emerging digital payment wallets like Apple Pay and CashApp, as well as slower growth in PayPal’s subsidiary products, Venmo and Braintree.”
A consumer in a cafe paying for goods using a mobile payment app.
PayPal Holdings, Inc. (NASDAQ:PYPL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 94 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of the fourth quarter which was 90 in the previous quarter. While we acknowledge the potential of PayPal Holdings, Inc. (NASDAQ:PYPL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed PayPal Holdings, Inc. (NASDAQ:PYPL) and shared the list of best stocks to buy, according to billionaire Ray Dalio. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.