Jim Cramer’s 5 Most Favorite Tech Stocks to Buy Now

2. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 123

PayPal Holdings, Inc. (NASDAQ:PYPL) is another name in the fintech sector that is lauded by Jim Cramer due to its strong business, even though the stock plunged in 2021. Moreover, the company also shows great growth potential as the fintech sector is expected to replace traditional credit card payments.

Of the 867 hedge funds tracked by Insider Monkey, 123 hedge funds held stakes in PayPal Holdings, Inc. (NASDAQ:PYPL) in Q3, compared with 143 in the previous quarter. The total value of these stakes is over $12.8 billion.

Recently, UBS assumed its coverage on PayPal Holdings, Inc. (NASDAQ:PYPL) with a Buy rating and a $263 price target. According to the firm’s analyst, the recent pullback in the shares presents a buying opportunity as the company will benefit from growing digital payments. In Q3, PayPal Holdings, Inc. (NASDAQ:PYPL) recorded over 13.3 million new accounts, up from 11.4 million accounts in the previous quarter.

Baron Funds recently published its Q3 2021 investor letter and mentioned PayPal Holdings, Inc. (NASDAQ:PYPL) in it. Here is what the firm has to say:

“PayPal Holdings, Inc. enables digital payments for consumers and merchants worldwide. Shares fell on quarterly financial results and guidance that were below investor expectations due to a faster roll-off of eBay business, which should only be a temporary headwind. PayPal also announced the acquisition of Paidy, the leading buy-now-pay-later provider in Japan, which expands PayPal’s addressable market into a fast-growing category. We remain investors because we believe PayPal is a prime beneficiary of the secular growth of e-commerce and digital financial services.”