5 Best Buy-the-Dip Stocks To Buy Now

3. Paypal Holdings Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 86

Paypal Holdings Inc. (NASDAQ:PYPL) shares have lost about 30% year to date. But Paypal Holdings Inc. (NASDAQ:PYPL) investors had something to cheer in October after the company posted strong Q3 results. GAAP EPS in the period came in at $1.30, beating estimates by $0.07. Revenue in the quarter jumped 8% year over year to $7.4 billion, beating estimates by $20 million. Total payment volume in the quarter jumped 15% to reach $387.7 billion.

Of the 910 hedge funds in Insider Monkey’s database, 86 hedge funds had stakes in Paypal Holdings Inc. (NASDAQ:PYPL). The most significant stakeholder of Paypal Holdings Inc. (NASDAQ:PYPL) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $381 million stake in the company.

Wedgewood Partners made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2023 investor letter:

“PayPal Holdings, Inc. (NASDAQ:PYPL) was a detractor from performance during the quarter. Total payment volume grew +11% while revenues grew +8% – both FX-neutral. Adjusted operating earnings grew +20%. E-commerce industry sales trends have normalized back to their pre-pandemic trend of growth, with high-margin branded payments keeping track with the industry. Despite this, investors continue to be concerned that PayPal’s fast-growing private-label payments solutions will dilute Company returns. However, payments is a very scalable business, and the Company will be able to manage both private label and branded for attractive returns and double-digit growth. While multiples in the payment industry have significantly compressed, especially after the multi-year process of being added to the index @inancial sector, PayPal’s businesses are substantially different enough from traditional spread-based businesses; in addition to possessing much more compelling growth drivers, PayPal’s well below market multiple should revert to its higher, historical average.”