Ravi Chopra’s Azora Capital’s Top 5 Stock Picks

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

Azora Capital’s Stake Value: $51,053,000

Percentage of Azora Capital’s 13F Portfolio: 7.94%

Number of Hedge Fund Holders: 143

PayPal Holdings, Inc. (NASDAQ:PYPL) is an American financial technology company that facilitates online money transfers via its digital payment system. PayPal Holdings, Inc. (NASDAQ:PYPL) operates in most countries, providing a secure digital alternative to paper money and manual transfer of funds. PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the top stocks in Ravi Chopra’s Q2 portfolio.

As of the end of the second quarter, Azora Capital owns 175,152 shares in PayPal Holdings, Inc. (NASDAQ:PYPL), amounting to $51.05 million, representing 7.94% of Chopra’s 13F portfolio. 

This stock is quite popular among the smart money, as 143 hedge funds monitored by Insider Monkey were bullish on PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of June. Fisher Asset Management is the leading stakeholder in PayPal Holdings, Inc. (NASDAQ:PYPL), with stakes worth $3.12 billion. 

Here is what Alger has to say about PayPal Holdings Inc. in its Q3 2021 investor letter:

“PayPal Holdings, Inc. was among top detractors from performance. PayPal is a pure play on e-commerce and electronic payments which is driving the company’s high unit volume growth. As a digital payments company, it is helping to facilitate the shift to a cashless society. The coronavirus pandemic has significantly accelerated the adoption of e-commerce and the utilization of digital payments platforms. In our view, PayPal is currently positioned to benefit from the strength in e-commerce trends, including increasing net new active users and increased engagement per user. PayPal also has launched a service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account. PayPal’s vision is to become a Super App that integrates payments, commerce and financial services, as well as crypto capabilities. After outperforming earlier in the year, the performance of PayPal shares weakened in the third quarter with the company  facing potentially higher transaction expenses and credit losses.  The higher transaction expenses are driven by a shift by  consumers to the higher cost travel and entertainment  categories which skew toward less profitable credit transactions.”