5 Stocks Jim Cramer and Billionaire Ken Fisher Have in Common

Below is the list of 5 stocks Jim Cramer and billionaire Ken Fisher have in common. If you want to read our comprehensive list and detailed discussion about their stock-picking strategies, go directly to the 10 Stocks Jim Cramer and Billionaire Ken Fisher Have in Common.

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

Number of Hedge Fund Holders: 143

CNBC’s host Jim Cramer says PayPal Holdings, Inc. (NASDAQ: PYPL) is a good stock to hold for the long term. Over the last year, the fintech company gained a lot of investors’ confidence amid its growth initiatives and consumer’s shift towards online payment platforms. Moreover, the company’s strategy of diving into crypto markets has also been helping in generating billions of dollars in revenue. Its shares are up 16.5% year to date.

In the second quarter, Fisher Asset Management lifted its position in the payment transfer company by 4% to 11.57 million shares.

Lakehouse Capital, an investment management firm, commented on a few stocks including PayPal in the second quarter investor letter. Here is what Lakehouse Capital stated:

“PayPal had a tremendous year as it was a significant beneficiary in the pull-forward in ecommerce. Total payment volume increased by 50% year-on-year through the first quarter of 2021 thanks to significant growth in users and merchants. The company now has 392 million active users, up 20.6% from March 2020, who use PayPal an average of 42 times a year. The significant growth in users and activity both look structural to us, not cyclical, and we doubt the six-million-plus merchants who began accepting PayPal in the past year will suddenly stop accepting one of the internet’s most widely used forms of payment.

PayPal is a prime example of how a widely followed business can still be chronically misunderstood. FactSet tracks 48 analysts who publish price targets on the stock, suggesting PayPal’s shares should be efficiently priced, and yet PayPal has beaten analysts’ average sales and earnings estimates in 18 of the 21 quarters since it was spun off from eBay. We suspect the market tends to underestimate the business’ inherent operating leverage and that the lifetime values of incremental new users continue to rise over time thanks to improving the functionality and a growing merchant base that allows new users to spend PayPal more widely than did their predecessors…” (Click here to see the full text)