Should Value Investors Buy Paypal Holdings (PYPL) Stock?

Qualivian Investment Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The fund’s performance in Q2 was ahead of the S&P 500 by 9.6% and 9.5% on a gross and net basis. You should check out Qualivian Investment Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Qualivian Investment Partners highlighted a few stocks and Paypal Holdings Inc. (NASDAQ:PYPL) is one of them. Paypal Holdings Inc. (NASDAQ:PYPL) engages in the development of technology platform for digital payments. Year-to-date, Paypal Holdings Inc. (NASDAQ:PYPL) stock gained 83.9% and on August 24th it had a closing price of $198.88. Here is what Qualivian Investment Partners said:

“PayPal: PYPL benefited from strong tailwinds due to COVID and more payments moving online in an accelerated fashion. Fiscal Q3 2020 results were substantially ahead of already high expectations. Total payment volume growth and net new user growth were the strongest since PYPL listed. PYPL is clearly benefiting from the faster digitization of payments and commerce. PYPL gained users who had not previously shopped online and saw new spend categories which were previously offline move to online post crisis. Omni-channel convergence (online ordering and instore pickup) has massively increased their total addressable market. PYPL is prioritizing the in-store opportunity and focusing on other forms of engagement like rewards, bill pay and Honey. It has strong growth optionality in eCommerce.”

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Yesterday, we published an article revealing that Paypal Holdings Inc. (NASDAQ:PYPL) is one of the 11 stocks hedge funds are crazy about in the second quarter.

In Q1 2020, the number of bullish hedge fund positions on Paypal Holdings Inc. (NASDAQ:PYPL) stock decreased by about 6% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Paypal’s growth potential. Our calculations showed that Paypal Holdings Inc. (NASDAQ:PYPL) is ranked #9 among the 30 most popular stocks among hedge funds.

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Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.