5 Best Large Cap Stocks to Buy Now

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

Number of Hedge Fund Holders: 97 

PayPal Holdings, Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It is one of the major large cap stocks to invest in. On October 11, PayPal announced the launch of its new Point of Sale system, Zettle, for small businesses in the US. It was launched in the European market last year and put the company in direct competition with Block’s Square Seller System. This sales system does not need a second device to pair with.

On October 12, Atlantic Equities analyst Kunaal Malde maintained an Overweight rating on PayPal Holdings, Inc. (NASDAQ:PYPL) stock and lowered the price target to $110 from $120, noting that the US and global economies will enter recession in 2023 and payments stocks are starting to discount in this scenario.

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in PayPal Holdings, Inc. (NASDAQ:PYPL), with 17 million shares worth more than $1.2 billion.

In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:

“This quarter, we bought shares in PayPal (NASDAQ:PYPL), the payments platform. PayPal has been one of the more high-profile victims of the market’s brutal ruthlessness over the past few months, and the stock fell by over two thirds between its peak in July to the beginning of March this year. As we progressed PayPal through the Mayar Checklist Process, we identified a business with a leadership position in a structurally growing market.

The company benefits from certain network effects, and faces several competitive threats at the same time. As the business profited from the move to online retail during the pandemic, as well as from the stimulus cheques handed out in the US, the stock price soared to absurd levels. As so often happens, however, the market had overcorrected by February and this quarter was offering prospective shareholders prices that assumed essentially zero growth in the business. When life gives you irrational sellers, make lemonade!”