Billionaire Mason Hawkins’ 5 Stock Picks with Huge Upside Potential

This article presents an overview of the Billionaire Mason Hawkins’ 5 Stock Picks with Huge Upside Potential. For a detailed overview of such stocks, read our article, Billionaire Mason Hawkins’ 11 Stock Picks with Huge Upside Potential.

5. PayPal Holdings Inc (NASDAQ:PYPL)

Number of Hedge Fund Investors: 78

Average Analyst Price Estimate: $73

Upside Potential: 21.67%

PayPal Holdings Inc (NASDAQ:PYPL) ranks fifth in our list of the top Mason Hawkins’ stock picks with upside potential. According to Yahoo Finance data, PayPal Holdings Inc (NASDAQ:PYPL) average analyst price target for the next 12 months is $73.

Mizuho recently downgraded PayPal Holdings Inc (NASDAQ:PYPL) stock to Neutral, citing market share loss to Apple Pay.

As of the end of the third quarter of 2023, 78 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in PayPal Holdings Inc (NASDAQ:PYPL). The biggest stakeholder of PayPal Holdings Inc (NASDAQ:PYPL) during this period was Gavin Baker’s Atreides Management which owns a $244 million stake in PayPal Holdings Inc (NASDAQ:PYPL).

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.”