2. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Funds: 123
PayPal Holdings, Inc. (NASDAQ:PYPL) has allowed its users to trade cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc., with an initial investment of only $1, directly through the PayPal digital wallet and Venmo. Furthermore, the San Jose, California-based financial technology corporation is working on making cryptocurrency an acceptable payment method across its extensive merchant network of 26 million globally. Currently, cryptocurrencies can be used for the payment of selected purchases.
The induction of cryptocurrencies in digital payment platforms like PayPal Holdings, Inc. (NASDAQ:PYPL) is attracting millions of users towards them. Like most of the stock, currency, commodity, and even cryptocurrency exchanges, there is a fee for trading cryptocurrency on the PayPal Holdings, Inc. (NASDAQ:PYPL) network.
The payment processing corporation also received a conditional Bitlicense from the New York Department of Financial Services (NYDFS) back in October 2020. This was the first-of-its-kind license issued by the state of New York that was aimed towards raising awareness about cryptocurrencies, such as the opportunities and risks of investing in cryptocurrencies and the know-how of the blockchain network.
Investment management firm Alger shared its stance on PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2021 investor letter. Here’s what the firm said:
“PayPal Holdings, Inc. was among top detractors from performance. PayPal is a pure play on e-commerce and electronic payments which is driving the company’s high unit volume growth. As a digital payments company, it is helping to facilitate the shift to a cashless society. The coronavirus pandemic has significantly accelerated the adoption of e-commerce and the utilization of digital payments platforms. In our view, PayPal is currently positioned to benefit the strength in e-commerce trends, including increasing net new active users and increased engagement per user. PayPal also has launched a service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account. PayPal’s vision is to become a Super App that integrates payments, commerce and financial services, as well as crypto capabilities. After outperforming earlier in the year, the performance of PayPal shares weakened in the third quarter with the company facing potentially higher transaction expenses and credit losses. The higher transaction expenses are driven by a shift by consumers to the higher cost travel and entertainment categories which skew toward less profitable credit transactions.”
