30 Stocks That Should Double in 3 Years

12. PayPal Holdings Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 94

PayPal Holdings Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments for merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in-person channels.

In Q4 2024, PayPal saw a 4% year-over-year increase in its net revenue to total $8.37 billion. The company also recorded a 2% increase in year-over-year active users. It has more than $11 billion in cash and assets on its balance sheet, along with $5 billion in annual free cash flow. In 2024, PayPal’s branded checkout segment saw consistent quarterly growth in transaction margin dollars, with US growth particularly accelerating in Q4.

PayPal Holdings Inc. (NASDAQ:PYPL) now has 432 million active accounts in 200+ countries. Upgraded checkout experiences, which are now live for more than 25% of US traffic, reduce latency by 40% when fully implemented and boost conversion rates by 1%. The company now has a focus on becoming a commerce platform and expanding into B2B bill pay.

Wedgewood Partners stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2025 investor letter:

“PayPal Holdings, Inc. (NASDAQ:PYPL) was a leading detractor from performance for portfolios during the quarter. The Company’s branded checkout grew by a healthy +6% while total payment volumes grew by +7% during the Company’s most recent quarter. PayPal also outlined several reinvestment initiatives across its platform that continue to accelerate its branded checkout volume growth back to double digits. In addition, the Company has authorized nearly $20 billion in share repurchases which represents nearly a third of its market cap as of quarter end. We continue to hold PayPal as one of our largest active weights in portfolios.”