5 Rebounding Tech Stocks to Watch

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

Number of Hedge Fund Holders: 100

5-Day Percentage Increase in Share Price as of August 5: 9.79%

PayPal Holdings, Inc. (NASDAQ:PYPL) is a digital payments technology firm. On August 2, PayPal Holdings, Inc. (NASDAQ:PYPL) released its earnings report for the second quarter of 2022, posting EPS of $0.93 and revenue of $6.81 billion, topping analysts’ predictions by $0.06 and $21.58 million, respectively. 

BMO Capital analyst James Fotheringham raised the price target on PayPal Holdings, Inc. (NASDAQ:PYPL) to $124 from $114 on August 4 and reaffirmed an ‘Outperform’ rating on the shares. The analyst is optimistic about PayPal Holdings, Inc. (NASDAQ:PYPL)’s Q2 earnings beat and increased FY22 guidance, while observing that PayPal Holdings, Inc. (NASDAQ:PYPL)’s revenue headwinds from foreign exchange and economic deceleration should be negated by expanding margins and capital return from its new $15 billion share repurchase program.

According to Insider Monkey’s data, 100 hedge funds reported owning stakes in PayPal Holdings, Inc. (NASDAQ:PYPL) as of the conclusion of Q1 2022, compared to 110 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management featured as the leading stakeholder of PayPal Holdings, Inc. (NASDAQ:PYPL), with 16.7 million shares worth $1.94 billion. 

Here is what Wedgewood Partners had to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q2 2022 investor letter:

“PayPal Holdings detracted from performance despite the Company generating healthy growth. Revenue grew +8%, but closer to +15% when adjusted for the well-telegraphed roll-off of its eBay relationship. As the Company laps the headwinds of eBay and difficult year ago comparisons, we expect PayPal should drive long-term growth in the mid-teens. Much of this will be driven by further penetration into the Company’s nearly 450 million active users. PayPal’s user base has grown by +50% since the onset of the pandemic so it makes sense for management to focus on driving higher transactions per account and better monetize this historical windfall of users. In our opinion, the shares have discounted away all of PayPal’s pandemic user and revenue gains, so we added to positions during the quarter.”