Top 5 Tech Stock Picks of Amir Mokari’s Emerson Point Capital

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

Number of Hedge Fund Holders: 123

PayPal Holdings, Inc. (NASDAQ:PYPL) is an American financial technology company that mainly operates an online payments system around the globe. The company recently announced to facilitate the Venmo users to pay with Venmo apps on Amazon from 2022.

Fundsmith LLP was the largest shareholder of PayPal Holdings, Inc. (NASDAQ:PYPL) in Q3, holding a roughly $3.2 billion worth of stake. Overall, at the end of Q3, 123 hedge funds in Insider Monkey’s database reported owning stakes in PayPal Holdings, Inc. (NASDAQ:PYPL), compared with 143 in Q2. The total value of these stakes is over $12.8 billion.

Alger mentioned PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2021 investor letter. Here is what the firm has to say:

“PayPal Holdings, Inc. was among top detractors from performance. PayPal is a pure play on e-commerce and electronic payments which is driving the company’s high unit volume growth. As a digital payments company, it is helping to facilitate the shift to a cashless society. The coronavirus pandemic has significantly accelerated the adoption of e-commerce and the utilization of digital payments platforms. In our view, PayPal is currently positioned to benefit the strength in e-commerce trends, including increasing net new active users and increased engagement per user. PayPal also has launched a service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account. PayPal’s vision is to become a Super App that integrates payments, commerce and financial services, as well as crypto capabilities. After outperforming earlier in the year, the performance of PayPal shares weakened in the third quarter with the company  facing potentially higher transaction expenses and credit losses.  The higher transaction expenses are driven by a shift by  consumers to the higher cost travel and entertainment  categories which skew toward less profitable credit transactions.”