Should You Consider Adding PayPal Holdings (PYPL) to Your Portfolio?

Investment management company RGA Investment Advisors recently released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. 2022 was a difficult year for the market and forecasting business trends and opportunities were challenging. The firm focuses on growing companies, at reasonable valuations with demonstrable business quality. The firm also believes that Biotech and life science tools and instruments verticals are the most interesting areas for better future returns. You can check the top 5 holdings of the fund to know its best picks in 2022.

RGA Investment Advisors highlighted stocks PayPal Holdings, Inc. (NASDAQ:PYPL) in the Q4 2022 investor letter. Headquartered in San Jose, California, PayPal Holdings, Inc. (NASDAQ:PYPL) is a digital technology platform. On February 3, 2023, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $85.52 per share. One-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was 10.95%, and its shares lost 29.56% of their value over the last 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $97.495 billion.

RGA Investment Advisors made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q4 2022 investor letter:

PayPal Holdings, Inc. (NASDAQ:PYPL) suffered with the slowdown in e-commerce, yet still will have outgrown e-commerce when we see final 2022 numbers. Much like Amazon, PayPal invested far too aggressively on the expectation of sustained elevated growth rates in e-commerce and unfortunately, unlike with Amazon, PayPal’s investment was on ancillary product excursions from which the company is already retrenching. The good news is that with this retrenchment, the company should once again return to its recipe of healthy top line growth and incremental margin leverage, but rather than grow back into their old margin structure they will have to cost-cut their way there."

Paypal PYPL Mastercard MA Visa
Paypal PYPL Mastercard MA Visa

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PayPal Holdings, Inc. (NASDAQ:PYPL) is in 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 126 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of the third quarter which was 97 in the previous quarter.

We discussed PayPal Holdings, Inc. (NASDAQ:PYPL) in another article and shared the list of top performing bitcoin stocks in January. In addition, please check out our hedge fund investor letters Q4 2022 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.