Should You Consider Investing in PayPal (PYPL)?

Wedgewood Partners, an investment management firm, published its fourth quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly net increase of 5.2% has been recorded by the fund for the fourth quarter of 2022, below the S&P 500 Index’s 7.56% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

In its Q3 2022 investor letter, Wedgewood Partners mentioned PayPal Holdings, Inc. (NASDAQ:PYPL) and explained its insights for the company. Founded in 1998, PayPal Holdings, Inc. (NASDAQ:PYPL) is a San Jose, California-based multinational financial technology company with an $88.1 billion market capitalization. PayPal Holdings, Inc. (NASDAQ:PYPL) delivered an 8.55% return since the beginning of the year, while its 12-month returns are down by -55.45%. The stock closed at $77.31 per share on January 17, 2023.

Here is what Wedgewood Partners has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2022 investor letter:

“PayPal detracted from performance during the quarter and for most of the year. During the most recent quarter the Company reported +14% growth in currency-adjusted total payment value (TPV) which helped drive +12% revenue growth. Management gave a cautious outlook for the holiday season as its core e-commerce addressable market continues to normalize post-Pandemic. With most of the disruptions related to eBay and also Pandemic normalization largely complete, PayPal can resume its margin expansion efforts in the new year as its payment’s platform remains highly scalable. Meanwhile, disruption in capital markets should hamper its unprofitable competitors in the payments space and allow for more opportunities related to M&A.”

Image by mohamed Hassan from Pixabay

Our calculations show that PayPal Holdings, Inc. (NASDAQ:PYPL) ranks 10th on our list of the 30 Most Popular Stocks Among Hedge Funds. PayPal Holdings, Inc. (NASDAQ:PYPL) was in 126 hedge fund portfolios at the end of the second quarter of 2022, compared to 97 funds in the previous quarter. PayPal Holdings, Inc. (NASDAQ:PYPL) delivered a -8.48% return in the past 3 months.

In January 2023, we also shared another hedge fund’s views on PayPal Holdings, Inc. (NASDAQ:PYPL) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.

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