5 Best Cash App Stocks To Buy Now

In this article, we discuss the 5 best cash app stocks to buy now. If you want to read our detailed analysis of the fintech industry and its future outlook, go directly to 10 Best Cash App Stocks To Buy Now.

5. Paypal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 100

Paypal Holdings, Inc. (NASDAQ:PYPL) deals in the provision of digital payment solutions, allowing users around the world to send and receive electronic payments. It remained a popular stock among hedge funds at the close of the first quarter, with a total of 100 hedge funds reporting ownership of stakes in Paypal worth $6.21 billion. Its leading shareholder at the end of March was Fisher Asset Management, holding a massive stake worth roughly $1.9 billion.

On May 10, analyst James Faucette of Morgan Stanley reiterated an ‘Overweight’ rating on Paypal Holdings, Inc. (NASDAQ:PYPL) shares, and revised the price target to $137 from $139. He feels that the market is missing the company’s outperformance as it continues to outpace underlying e-commerce growth. The company’s revenue trajectory has normalized since coming out of the Covid pandemic, according to the analyst, who notes that this is not a structural issue as feared by some investors.

Paypal Holdings, Inc. (NASDAQ:PYPL) reported EPS figures in-line with estimates at the end of the first quarter. Its Q1 revenue stood at $6.48 billion, beating Street estimates by $75.6 million.

Wedgewood Partners, an investment firm, highlighted a few stocks in its Q1 2022 investor letter, and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. The fund said:

“PayPal also detracted from performance during the quarter as investors panicked in the face of the well-telegraphed run-off of eBay’s revenues. We have been aware of the runoff of eBay’s revenues since at least the third quarter of 2017.2 Although markets are supposedly efficient, maybe markets are only as efficient as long as the same shareholders are in the stock. When a shareholder base turns over several, if not dozens, of times over a 5-year time frame, perhaps old news periodically becomes “new” to a market riddled with transient shareholders. In any case, we increased our weightings in the stock for the first time since 2018 as the only thing “new”to us was the highly attractive multiple for a competitively wellpositioned business in the e-commerce industry.”