Manole Capital Management, an investment management company, focused on covering the Financial and Technology sectors, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. The letter discussed the pending debt ceiling crisis, a few macro issues like the money market and stock market, household savings, the labor environment, the Fed, inflation trends, and interest rates. The majority of the letter is focused on specific Fintech and financial issues. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Manole Capital Management highlighted stocks like PayPal Holdings, Inc. (NASDAQ:PYPL) in the second quarter 2023 investor letter. Headquartered in San Jose, California, PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments. On July 6, 2023, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $66.14 per share. One-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was 4.17%, and its shares lost 9.93% of their value over the last 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $73.793 billion.
Manole Capital Management made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its second quarter 2023 investor letter:
“For our purposes, we are just going to focus on software digital wallets, as they are much more common and accessible. If you own an iPhone, then you have an Apple Pay pre-loaded digital wallet. If you have a Samsung phone, you have Samsung Pay available for use. Those two, along with Google Pay and PayPal Holdings, Inc. (NASDAQ:PYPL), are the four most popular digital wallets today. According to the Payments Journal, PayPal has been used (over the last 12 months) by 62% of American consumers, followed by Apple Pay at 41% and Google Pay at 32%
Over the last several years, P2P payments have made tremendous strides in adoption and usage. Whenever something becomes a verb, like just Venmo me $10, you know that it has been widely embraced by society. The concept of allowing individuals to pay each other, via our smartphones, has clearly taken off.
However, the biggest flaw or issue (that we’ve identified) is interoperability. Digital wallets allow users to pick their favorite card to make payments with. P2P acts as a bit of a “walled garden” and its funding source is still siloed. This is a critical aspect for future P2P growth, as Venmo users can’t pay Cash App users who can’t pay Zelle users. Visa is launching Visa+ next year and it has already signed up PayPal and Venmo as its initial customer. The global card networks seem like the perfect piece to solve this interoperability puzzle. Of course, this will only work if banks allow an independent network to serve as the gateway between disparate user bases…” (Click here to read the full text)
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PayPal Holdings, Inc. (NASDAQ:PYPL) is in 13th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 103 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of first quarter 2023 which was 115 in the previous quarter.
We discussed PayPal Holdings, Inc. (NASDAQ:PYPL) in another article and shared the list of most profitable websites in the world. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
