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Here’s How Wedgewood Views PayPal Holdings (PYPL)

Wedgewood Partners, an investment management company, released its first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, Wedgewood Composite’s net return was 11.5% compared to the Standard & Poor’s 10.6%, Russell 1000 Growth Index’s 11.4%, and Russell 1000 Value Index’s 9.0% return for the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Wedgewood Partners featured stocks like PayPal Holdings, Inc. (NASDAQ:PYPL) in the first quarter 2024 investor letter. Headquartered in San Jose, California, PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments. On April 16, 2024, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $63.43 per share. One-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was 0.67%, and its shares lost 17.00% of their value over the last 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $66.769 billion.

Wedgewood Partners stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its first quarter 2024 investor letter:

"PayPal Holdings, Inc. (NASDAQ:PYPL) has been a long-standing holding for Wedgewood, since 2015. After taking some of our gains around the company's COVID-19-fueled peak in 2021, we have been adding to the stock slowly over the past two years, taking it back to a signi2icant position in the portfolio.

We would like to update you on our current thinking.

Like most "COVID-19 stocks", a variety of companies (e.g., Amazon) bene2ited from arti2icially high growth rates due to the COVID-19 lockdowns and subsequent stimulus; fundamentals at PayPal saw a normalization as the world returned to normal through 2021- 2022. Similar to most of those companies, many PayPal investors had incorrectly assumed their arti2icially elevated growth rates during the COVID-19 period would continue for years and were surprised when the normalization occurred, leading to a decline in the Company's admittedly overheated stock. The big difference between PayPal and many of these stocks (e.g., Amazon once again) is that PayPal still has not recovered from this broad normalization period…” (Click here to read the full text)

A consumer in a cafe paying for goods using a mobile payment app.

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PayPal Holdings, Inc. (NASDAQ:PYPL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, PayPal Holdings, Inc. (NASDAQ:PYPL) was held by 87 hedge fund portfolios, compared to 78 in the previous quarter, according to our database.

We previously discussed PayPal Holdings, Inc. (NASDAQ:PYPL) in another article, where we shared the list of biggest gig economy companies in the world. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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