Is PayPal (PYPL) A Great Investment Pick?

Baron Funds, an asset management firm, published its “Baron Opportunity Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A decline of 2.03% was delivered by the fund’s institutional shares for the third quarter of 2021. For the period, the Fund trailed the Russell 3000 Growth Index, which rose 0.69%, and the S&P 500 Index, which increased 0.58%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron Opportunity Fund, in its Q3 2021 investor letter, mentioned PayPal Holdings, Inc. (NASDAQ: PYPL) and discussed its stance on the firm. PayPal Holdings, Inc. is a San Jose, California-based financial technology company with a $224.4 billion market capitalization. PYPL delivered a -18.44% return since the beginning of the year, while its 12-month returns are down by -11.95%. The stock closed at $191.02 per share on December 07, 2021.

Here is what Baron Opportunity Fund has to say about PayPal Holdings, Inc.  in its Q3 2021 investor letter:

PayPal Holdings, Inc. – PayPal first caught consumers’ attention as a peer-to-peer digital payment application, particularly as a convenient and trustworthy way for eBay buyers to pay eBay sellers in the early days of online shopping. Over the years it expanded to become a nearubiquitous online retail payments platform, while also offering other shopping tools and digital services, such as digital wallet, bill pay, Buy Now-Pay Later, crypto-currency, in-store retail, and more. According to PayPal’s CEO, these new acts enabled the company to increase the TAM it “play[s] in” by “over six times in the last three years.” PayPal has 403 million active accounts today and is on its way towards its 750 million target by 2025 and 1 billion longer term, for a total TAM sized at over $1 trillion.”

Paypal PYPL Mastercard MA Visa

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Based on our calculations, PayPal Holdings, Inc. (NASDAQ: PYPL) ranks 9th in our list of the 30 Most Popular Stocks Among Hedge Funds. PYPL was in 123 hedge fund portfolios at the end of the third quarter of 2021, compared to 143 funds in the previous quarter. PayPal Holdings, Inc. (NASDAQ: PYPL) delivered a -34.86% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.