Billionaire Richard Chilton is Selling These 5 Tech Stocks

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

Number of Hedge Fund Holders: 100

PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology company offering a digital payments platform to users around the world. The platform allows consumers to conduct online money transfers in around 200 markets.

Richard Chilton sold off 96% of his stake in PayPal Holdings, Inc. (NASDAQ:PYPL) during Q1 2022.

On June 22, the price target on PayPal Holdings, Inc. (NASDAQ:PYPL) was lowered from $190 to $155 at Credit Suisse, while an Outperform rating was maintained. The firm credited the reduction in price target to a number of factors, including the departure of CFO John Rainey and inflationary pressures.

Last week, PayPal Holdings, Inc. (NASDAQ:PYPL) laid off employees working across different states in the risk management and operations department in an attempt to cut costs. PayPal Holdings, Inc. (NASDAQ:PYPL) stock is 62% down YTD as of June 21.

Here’s what Baron Funds said about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2022 investor letter:

“PayPal Holdings, Inc. enables digital payments for consumers and merchants worldwide. Shares fell on disappointing 2022 guidance that called for 15% to 17% revenue growth but flat EPS growth due to higher credit costs and a higher tax rate. Management also tempered user growth expectations due to a strategic shift toward improving engagement of existing users and away from less-productive new user acquisition. Despite reduced earnings expectations, we believe the share price decline is overdone given PayPal’s growth opportunities and competitive advantages. We reduced PayPal Holdings, Inc.as it became clear that strong growth trends during the early part of the pandemic were not persisting in a more normal environment.”

 PayPal Holdings, Inc. (NASDAQ:PYPL) was held by 100 hedge funds as of Q1 2022.