Wedgewood Partners’ Trimmed Its Holdings in PayPal Holdings (PYPL)

2 weeks ago 6

Soumya Eswaran

Mon, January 19, 2026 astatine 8:19 AM CST 3 min read

Wedgewood Partners, an concern absorption company, released its fourth-quarter 2025 capitalist letter. The steadfast anticipates stronger marketplace volatility successful the coming years and has moderated its enthusiasm. A transcript of the missive tin beryllium downloaded here. The Wedgewood Composite returned -1.8% (net) successful the 4th fourth compared to the S&P 500’s 2.7%, the Russell 1000 Growth Index’s 1.1%, and the Russell 1000 Value Index’s 3.8% returns. YTD, the Composite gained 4.3% compared to 17.9%, 18.6%, and 15.9% returns for the indexes, respectively. Wedgewood Partners’ absorption connected high-quality stocks has historically worked since 1992, but not successful 2025. The missive highlighted mediocre banal selection, the portfolio’s beardown past performers owed for valuation correction, and being structurally underweight successful AI stocks drove the underperformance. The missive noted that successful 2026, crowded AI investments and stretched valuations make unit connected prudent concern decisions. In addition, you tin cheque the Fund’s apical 5 holdings to find its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Wedgewood Partners highlighted PayPal Holdings, Inc. (NASDAQ:PYPL) arsenic a show detractor. PayPal Holdings, Inc. (NASDAQ:PYPL) is simply a exertion level that enables integer payments. On January 16, 2026, PayPal Holdings, Inc. (NASDAQ:PYPL) banal closed astatine $56.88 per share. One-month instrumentality of PayPal Holdings, Inc. (NASDAQ:PYPL) was -4.88%, and its shares mislaid 38.04% of their worth implicit the past 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a marketplace capitalization of $54.337 billion.

Wedgewood Partners stated the pursuing regarding PayPal Holdings, Inc. (NASDAQ:PYPL) successful its 4th fourth 2025 capitalist letter:

"PayPal Holdings, Inc. (NASDAQ:PYPL) besides detracted from show during the astir caller quarter. The Company reported steadfast +8% measurement maturation crossed its branded checkout portfolio, driven by +10% maturation successful the U.S., starring to +12% maturation successful adjusted net per share. However, PayPal besides reported a slowing successful its measurement precocious successful the quarter, a inclination they attributed to a weaker macro situation on with a slower than expected uptake successful the rollout of their caller checkout initiatives. In addition, the Company disappointingly announced it would marque meaningful investments successful the emerging agentic commerce industry, partnering with AI developers to bring PayPal to fashionable assistants specified arsenic ChatGPT and Perplexity, on with Alphabet's agentic solutions. We trimmed our PayPal positions during the 4th arsenic we judge the combined slowing of transaction volumes and heightened expenses volition effect successful slower proit maturation than we antecedently expected."