5 Best Fintech Stocks To Buy In 2024

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

Number of Hedge Fund Holders: 78

PayPal Holdings, Inc. (NASDAQ:PYPL) operates a global technology platform facilitating digital payments for merchants and consumers. The company offers payment solutions under PayPal, Venmo, and Braintree names. PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the top fintech stocks, ranking 3rd on our list. On February 7, the company reported a Q4 non-GAAP EPS of $1.48 and a revenue of $8 billion, outperforming Wall Street estimates by $0.12 and $130 million, respectively. 

According to Insider Monkey’s third quarter database, PayPal Holdings, Inc. (NASDAQ:PYPL) was part of 78 hedge fund portfolios, compared to 86 in the preceding quarter. Gavin Baker’s Atreides Management is a prominent stakeholder of the company, with 4.17 million shares worth $244 million. 

Wedgewood Partners stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its fourth quarter 2023 investor letter:

“PayPal Holdings, Inc. (NASDAQ:PYPL) also contributed less to portfolio performance than most holdings during the fourth quarter. The total payment volume handled by PayPal during its most recent quarter grew +15%, which helped drive healthy revenue growth and +20% earnings per share growth. Critically, the Company’s new management team has significant opportunity to drive more revenue and earnings growth across the massive, multi-trillion-dollar payments addressable market. PayPal’s rapidly growing payment processing brand, Braintree, represents one of those revenue growth opportunities, either by raising prices, as the Company had previously used a low-price strategy to establish a beachhead in this market, or by adding value-added services. PayPal’s branded checkout remains the largest volume and profit driver for the business, and we expect this to continue to track in-line with e-commerce growth in the near term, and eventually take share as the Company rolls out new features to its over +400 million users and +30 million merchants. We added to our position with the stock trading at just 10X forward earnings estimates during the quarter because there are many more long-term growth opportunities relative to most financial companies that trade for similar multiples and compared to technology companies that trade for much higher multiples.”