Is PayPal (PYPL) A Long-Term Buy?

Polen Capital Management, a value-driven, concentrated, long-term investment management firm, published its ‘Polen Focus Growth’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.15% was recorded by the fund for the Q4 of 2020, just an inch below both its S&P 500 benchmark that delivered a 12.15% return, and Russell 1000 index that returned 11.39%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Polen Focus Growth, in their Q4 2020 Investor Letter said that PayPal Holdings, Inc. (NASDAQ: PYPL) was one of the top contributors for the fund during the fourth quarter of 2020. PayPal Holdings, Inc. is an online payment platform that currently has a $316.8 billion market cap. For the past 3 months, PYPL delivered a decent 33.39% return and settled at $270.43 per share at the closing of February 4th.

Here is what Polen Focus Growth has to say about PayPal Holdings, Inc. in their investor letter:

“For the full year 2020, one of the top performers was PayPal, which we purchased in 2019, the company continues to take market share in digital payments and has seen an acceleration in user adoption and engagement, especially within their “silver tech” or older user demographic. We expect many more years of ongoing double-digit growth from their various business segments and new initiatives.”

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Last October 2020, we published an article telling that PayPal Holdings, Inc. (NASDAQ: PYPL) was in 144 hedge fund portfolios, its all time high statistics. PYPL delivered a huge 127.48% return in the past 12 months.

Our calculations show that PayPal Holdings, Inc. (NASDAQ: PYPL) ranks 9th in our list of the 30 most popular stocks among hedge funds.

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