These 5 Companies Recently Cut Their Profit Forecast

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

Number of Hedge Fund Holders: 100

PayPal Holdings, Inc. (NASDAQ:PYPL) operates a fintech platform that assists with digital payments for merchants and consumers worldwide. On April 27, PayPal Holdings, Inc. (NASDAQ:PYPL) posted its Q1 results, with GAAP earnings per share of $0.43, missing consensus estimates by $0.05. 

Along with its Q1 report, PayPal Holdings, Inc. (NASDAQ:PYPL) reported its guidance for 2022. The company lowered its full-year profit forecast given the payments volume could be impacted from soaring inflation and the war in Ukraine. The company forecasts adjusted profit of $3.81 and $3.93 per share, down from its earlier expectations ranging between $4.60 and $4.75.

According to Insider Monkey’s Q1 data, PayPal Holdings, Inc. (NASDAQ:PYPL) was part of 100 public hedge fund portfolios, compared to 110 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management is the leading shareholder of the company, with 16.7 million shares worth $1.9 billion. 

Here is what Aristotle Capital Management Small Cap Equity has to say about Paypal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2022 investor letter:

“We sold our position in PayPal due to the uncertain twelve-month horizon the company faces due to market headwinds from inflation and supply chain issues impacting e-commerce. On a more fundamental level, we sold due to the seismic shift in strategy and our disappointment with management credibility. The company reported weak 2022 guidance, and a strategic shift announced on the fourth quarter 2021 earnings call. The global payments space is undergoing a massive transition due to new technology introduced by both private and new Initial Public Offerings prospects, and we believe that the significant amount of private capital underwriting the new technology will continue to pressure incumbent players, even those as large and seemingly in the sweet spot of e-commerce payments, as PayPal currently is.”