PayPal operates a digital payment system that makes commerce more convenient and secure for small businesses and consumers. PayPal also owns Venmo, a popular U.S.-based application that allows users to send and receive funds from friends and contacts without fees. The appeal of secure, convenient online money transfer apps and flexible payment options have skyrocketed throughout the pandemic.

Hedge Funds Sell Despite Growth

PayPal received mixed responses from Hedge Funds and Institutions. While Hedge Funds were selling, some Institutions added the stock to their portfolios. The aggregate 13F shares held increased to approximately 968.7 million from 968.3 million, growing about 0.04%. In contrast, Hedge Funds decreased their holdings by about 5.3% to 214.5 million. Overall, 46 hedge funds created new positions, 174 added to existing holdings, 47 exited, and 196 reduced their stakes.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise over the next four years, with increases in growth from 2021 to 2024 spanning from approximately 17.5% to 26.0%. These year-over-year estimated increases could bring earnings to $8.88 per share in 2024, up from $4.56 for 2021. Revenue predictions are also noteworthy, with revenue expected to increase to $44.6 billion by 2024, up from $25.7 billion.

(WhaleWisdom)

Analysts Are Feeling Positive

Analysts have good things to say about the stock as price targets were raised amid PayPal’s strong performance and potential. BTIG analyst Mark Palmer maintained a Buy rating on PayPal’s shares and increased its price target to $345 from $300. Fahed Kunwar from Redburn Ltd. Also gave PayPal a Buy rating, citing its powerful brand and the expanded customer revenue stream from its acquisition of Venmo. Susquehanna International Group analyst James Friedman gave the stock a positive rating and price target of $330, noting that the company has a new cryptocurrency payment strategy with a good chance of success.

Favorable Outlook

PayPal continues to weather the pandemic and maintain positive momentum. The company has been a notable player in the payment service business. Its flexible, secure payment options remain in high demand. Investors have good reason to acquire shares given motivating estimates from analysts and the potential for continued growth.

Tandem is a medical device company that develops insulin pumps, insulin dosing systems, glucose monitoring software, and other products and services that improve individuals’ lives with diabetes. Tandem initially felt the sting at the start of the coronavirus pandemic in the spring of 2020. Government stay-at-home advisories, business closures, and general pandemic-induced fear by the public likely contributed to a temporary reduction in the volume of visits to doctors and delays in bringing Tandem’s products and services to new customers. Fortunately, about five months into the pandemic, the company’s business rebounded as medical visits started to return to normal levels and new customers began to try Tandem’s insulin pump therapy services.

Mixed Results from Hedge Funds and Institutions

Tandem seemed to fall out of favor with hedge funds. The fourth quarter aggregate 13F shares held decreased to about 14.9 million from 16.3 million, a decrease of approximately 8.6%. Of the hedge funds, 13 created new positions, 35 added to existing holdings, 21 exited, and 31 reduced their stakes. In contrast to hedge funds, institutions were buying. Overall, institutions increased their aggregate holdings by about 7.2%, to approximately 57.8 million from 54.0 million, helping to push Tandem on the HeatMap to 2 from 41.

(WhaleWisdom)

Encouraging Multi-Year Estimates

Analysts estimate that year-over-year revenue growth for 2021 will increase by about 22.4%, continuing with growth in the range of 17.7% to 24.9% over the next few years. Between 2021 and 2024, revenue could very likely grow from approximately $610.5 million to $1.1 billion.

Earnings per share are forecast at breakeven in 2021, followed by a surge in 2022 to $0.59. Analysts expect positive year-over-year growth for 2023 and 2024 at about 138.1% and 17.9%, respectively. These surges in growth could bring earnings per share to an estimated $1.66 by December 2024.

(WhaleWisdom)

Optimistic Analysts

Lake Street Capital Market’s analyst, Brooks O’Neil, took note of Tandem’s strong fourth-quarter results and raised its price target to $150 from $137. O’Neil’s enthusiasm about the stock is influenced by a great short and long-term outlook for Tandem’s role in addressing the diabetes epidemic. Worldwide increases in insulin pump shipments have contributed to Tandem beating Wall Street estimates for its fourth-quarter revenue.

Favorable Outlook

Tandem showed resiliency during the coronavirus pandemic. Despite its competition in the diabetic device market, it continues to build its customer base and deliver products and services that aid in the diabetes pandemic.

Analysts are bullish about the future, raising price targets as customer demand for diabetic devices remains strong. Tandem has regained some upward traction in recent months and holds promise beyond 2021 for patient investors.

Sea is a consumer internet company that offers e-commerce and online gaming and personal computer content, mobile digital content, and digital financial services. The technology company is structured with three business segments to deliver these services: Garena, Shopee, and SeaMoney. While many businesses have faced hurdles during the coronavirus pandemic, Sea has seen a significant boost in sales as customers following stay-at-home advisories and quarantines seek greater online retail therapy and digital entertainment, with no clear end in sight to these behavioral shifts.

Hedge Funds Are Buying

Sea has earned the favor of hedge fund managers and institutions. Looking at activity by the top hedge funds in the third quarter, the aggregate 13F shares held increased to about 72.5 million from 71.7 million, an increase of approximately 1.2%. Of the hedge funds, 33 created new positions, 48 added to an existing holding, 11 exited, and 67 reduced their stakes. Institutions were also buying, and aggregate holdings increased by about 0.9% to approximately 241.0 million from 238.8 million. Sea’s WhaleWisdom HeatMap ranking improved to 9 in the third quarter, up from 14 previously.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise over the next several years, with increases in growth from 2020 through 2026 spanning from approximately 13.4% year over year to 56.4%. Estimated increases for earnings between 2020 and 2023 could bring year over year earnings to $2.77 per share in 2023, up from a loss of $2.47 for 2020.

(WhaleWisdom)

Analysts See Strong Growth

Investment and financial service companies recognize Sea’s growth potential and street analysts are bullish. Credit Suisse Group AG recently bumped Sea’s price target to a Street high of $285, up from $225. Credit Suisse cited recent gaming growth and predictions for growth in Sea’s e-commerce unit, Shopee.

Positive Outlook

Hedge funds and institutions are buying, and analysts share optimism following a year of robust revenue growth. There is an opportunity for Sea to continue to reap the benefits of the pandemic’s influence on online shopping and entertainment habits. Recent growth and multi-year estimates are encouraging for investors in the long-term.

PayPal is an American company with a technology platform that enables digital and mobile payments on behalf of merchants and consumers and supports online money transfers between friends and family. PayPal rebounded from a dip in performance around March of 2020 when the coronavirus pandemic gained traction in the United States. However, the poor performance quickly reversed as investors soon realized the benefits the pandemic would have as consumer shopping habits shifted online. Many businesses were forced temporarily to close with consumers adhering to social distancing guidelines. There was a shift to online technology for money management, including online shopping through digital payments. Despite the company soaring to new revenue heights, PayPal did slide on the WhaleWisdom HeatMap to a ranking of 34 from 16.

Hedge Funds Are Selling

Despite PayPal’s gains, hedge funds and institutions were selling in the third quarter. Hedge funds decreased their aggregate 13F shares held to approximately 226.6 million from about 237.5 million. Of hedge funds, 49 created new positions, 153 added to an existing holding, 25 exited, and 221 reduced their stakes. Institutions decreased their aggregate holdings to about 967.7 million from 980.0 million, a mild decrease of 1.3%.

(WhaleWisdom)

Revenue Is on the Rise

Analysts have positive views on PayPal with year over year growth ranging from 15.8% to 20.8% over the next four years. Revenue is forecast to reach approximately $43.2 billion in 2024, up from $25.6 billion in 2021. Predicted increases may bring earnings to $11.37 per share by 2025, up from $4.55 for the fiscal period ending in December 2021.

Enthusiastic Views

Analysts appear enthusiastic about the stock. Mizuho Securities USA’s analyst, Dan Dolev, believes that the company is becoming the “ultimate financial ‘super app,’ that transcends across payments, commerce, and financial services.” PayPal recently announced the upcoming launch of a new cryptocurrency business unit, and this also has analysts’ attention. Keefe Bruyette & Woods Inc’s (KBW) analyst, Sanjay Sakhrani, shared similar sentiments and noted that the cross-generational behavior shift towards eCommerce creates the opportunity for sustainably higher earnings power.

(WhaleWisdom)

Positive Overall Outlook

PayPal’s recent growth brings an encouraging outlook, as supported by future earnings estimates that show continued growth through 2025. Amidst the pandemic, this digital payment leader offers investors an opportunity as it continues to see increased demand for its services.

Pinduoduo operates an interactive e-commerce platform and is one of China’s largest online marketplaces, serving customers worldwide. The company appears to be benefitting from changes in shoppers’ habits during the coronavirus pandemic, which has brought higher sales. Pinduoduo boasts a customer to business (C2B) model that allows it to eliminate distributors and ship directly to manufacturers. Additionally, Pinduoduo has shifted a portion of efforts into the online grocery market, which offers further business opportunity as consumers have sought online food shopping opportunities at an increased rate throughout the pandemic.

Hedge Funds Are Buying

Pinduoduo has captured hedge funds’ attention, with aggregate 13F shares held increasing by about 22.4% in the third quarter. This healthy increase brought shares held to about 74.3million from 61.6 million. Of the hedge funds, 24 created new positions, 29 added to existing holdings, 15 closed out their position, and 21 reduced their stakes. In slight contrast to hedge funds, institutions decreased their aggregate holdings by about 2.5%, to approximately 226.8 million from 232.7 million.

(WhaleWisdom)

Favorable Forecasts

Pinduoduo is viewed positively by many prominent investment banks and financial services companies such as Goldman Sachs Group, Inc., Bank of America Corp. (BofA), and Barclays PLC. Pinduoduo may also benefit from a recent regulatory probe into its competitors, which may curb monopolistic conduct and open up Pinduoduo’s options for working with merchants. Analyst Jerry Liu from UBS Securities Ltd. believes the anti-monopoly probe is likely to lower pricing and result in Pinduoduo’s top competitors being less aggressive with merchants. Barclay’s analyst, Gregory Zhao, raised Pinduoduo’s price target to $125 from $79, keeping an equal weight rating on the shares.

Encouraging Multi-Year Estimates

After year-over-year revenue growth of about 80.9% in 2020, analysts anticipate continued growth in revenue from 2021 through 2023. Pinduoduo is forecast to grow revenue in a range of approximately 19% to 81%, which would bring revenue estimates of roughly $12.1 billion in December 2021, later increasing to about $19.8 billion in 2023. Rising year-over-year estimates are predicted for earnings as well, climbing to $3.32 in 2023, up from -$0.37 in 2020.

Bright Outlook

Pinduoduo’s 2020 profit growth helped demonstrate the company as a formidable player in e-commerce. Its multi-year estimates are encouraging for investors. The company has shown positive momentum amidst the coronavirus pandemic and strategically chosen new business ventures with future potential.

Trade Desk is an information technology company that markets an online software platform geared towards digital advertising campaigns. Advertising buyers can purchase these tools to manage their campaigns across social media, mobile devices, and video formats. Additionally, the coronavirus pandemic has positively impacted the Trade Desk. The pandemic-fueled rise in television streaming has resulted in increased and more deliberate advertising spending.

Hedge Funds Sell Despite Recent Gains

Although Trade Desk’s stock has had significant gains in recent months, hedge funds are selling. Looking at third quarter activity by hedge funds, the aggregate 13F shares held decreased to about 5.0 million from 6.2 million, a decrease of approximately 19.6%. Of the hedge funds, 18 created new positions, 29 added to existing holdings, 16 closed them out, and 41 reduced their stakes. Institutions sold off stock at a slower rate than hedge funds with a decrease in aggregate holdings of about 6.9%, to approximately 31.2 million from 33.5 million.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see revenue grow through 2023, ranging from 22.2% year over year for 2020 to 29.8% growth in 2023; this estimate would grow revenue to approximately $1.8 billion by 2023. Earnings estimates are also very optimistic, with year over year estimated increases that would bring earnings to $9.38 per share in 2023, up from $4.97 in 2020.

Analysts Share Optimism on TTD’s Future

Needham & Co. raised its price target on Trade Desk to $1,000 from $750 and maintained a buy rating on the stock, citing the pandemic tailwind that is believed to continue to yield increased demand. Berenberg Capital Markets noted the IT company’s favorable positioning and sustainable competitive advantage in a large market. Berenberg believes that Trade Desk is the “best way to play” connected television (CTV).

Positive Outlook

Trade Desk’s impressive 2020 growth is encouraging for investors. The company is well-positioned to continue to capitalize on the rapid growth of CTV advertising, which got a boost due to pandemic related TV streaming. Analysts’ ratings and multi-year estimates present as an attractive metrics to garner the attention of investors.

RingCentral offers cloud-based internet and telephone communication services with collaboration solutions for mobile and distributed businesses. While many companies had experienced setbacks during the coronavirus, especially when government lockdowns around March impacted so many business sectors. RingCentral has been able to pivot and actually benefit from increased sales during the pandemic.

Hedge Funds Are Buying

RingCentral saw hedge fund managers and institutions buying, though overall institution ownership was down slightly by 0.1%. Looking at activity by the top hedge funds in the second quarter, the aggregate 13F shares held increased to about 23.9 million from 23.1 million, an increase of approximately 3.5%. Of the hedge funds, 23 created new positions, 54 added to existing holdings, 25 exited, and 49 reduced their position. With aggregate holdings increasing by about 1.1% to approximately 77.4 million from 76.5 million, institutions were also buying.

(WhaleWisdom)

Favorable Multi-year Estimates

Analysts expect to see revenue grow rather consistently from 2020 through to 2023, ranging from 23.1% to 30.2% year over year growth. Between December 2020 and 2023, revenue is anticipated to grow to approximately $2.3 billion from $1.2 billion. Earnings estimates are also very optimistic, with year-over-year estimated increases that would bring earnings to $2.15 per share in 2023, up from $0.96 in 2020.

Positive Outlooks from Analysts

Investment firms have responded positively to RingCentral’s new partnership with Vodafone. RingCentral’s services will match nicely with Vodafone’s mobile expertise. Morgan Stanley’s analyst, Meta Marshall, favors the deal, noting that the legacy Unified Communications market was underpenetrated. Marshall gave the stock a $420 price target, up from $300. Marshall initially rated the stock Equal-weight and then later upgraded to an Overweight rating. Raymond James Financial, Inc. raised the stock’s price target to $450 from $355, maintaining a Strong Buy rating.

Bright Outlook

RingCentral’s impressive 2020 growth is certainly encouraging for investors, especially after a rough start to the year near the beginning of the pandemic. The company also appears well-positioned to continue to respond to the pandemic and act upon increased demand for its services, especially given Vodafone’s partnership. Analysts’ ratings and multi-year estimates speak to the stock’s promise, offering investors an attractive opportunity.

Chegg provides an online educational platform that includes assistance with homework, course selection, tutoring, and textbook rental services. Demand for Chegg’s direct-to-student learning platform has increased during the coronavirus pandemic, in part due to a substantial move by educational institutions to remote learning. As students seek alternatives to a professor’s physical office hours or an in-person tutor, Chegg’s services can prove valuable. It is understandable why Chegg saw strong subscriber growth in the second quarter. This upward momentum continued into the third quarter.

Mixed Q3 Results

Hedge Funds were selling in the third quarter. The aggregate 13F shares held decreased to about 38.6 million from 39.4 million, a decline of approximately 2%. Of the hedge funds, 26 created new positions, 34 added to an existing one, 37 exited, and 40 reduced their stake. In contrast to hedge funds, Chegg caught the eye of institutions. Overall, institutions increased their aggregate holdings by about 4.1% in the third quarter, to approximately 126.5 million from 121.4 million.

(WhaleWisdom)

Positive Estimates

Analysts project year-over-year revenue growth of approximately 52.9% for the fiscal year 2020, to $628.2 million in revenue. Positive year over year growth predictions continues through to 2024. There is more good news for share value. The expectation is that earnings will rise to $1.25 by December 2020 and ultimately to $2.41 by December 2023.

The education sector is outperforming the general market; At the same time, some growth may be tied to online schooling during the pandemic. Many new online education models are likely to remain in place for some time, even once the pandemic is over. Analysts see a strong fourth quarter for the company, with growing subscriptions and net revenue estimated between $188 million and $190 million.

Bright Outlook Ahead

Chegg’s impressive growth and future estimates are encouraging for investors. Chegg has reaped benefits from the pandemic’s push toward online learning; what started out as a necessary safety measure during a time of social distancing is likely to remain an integral component of a new educational territory. Investors have had strong motives to acquire shares.

PayPal operates a global online payment system that serves as an electronic alternative to traditional paper methods. It acts as a digital wallet for many, convenient for small businesses to invoice, and offers financial products.

Buying Spree

Looking at second-quarter activity by the top hedge funds and institutions, it seems that PayPal has some fans. Of hedge funds, 80 created new positions, 132 added to existing holding, 23 closed out, and 175 reduced their stakes. Overall, hedge funds increased aggregate holdings by about 6.2% to approximately 225.8 million from 212.6 million. Similarly, institutions were also buying, increasing their aggregate holdings by about 0.6% to approximately 978.8 million from 972.7 million.

(WhaleWisdom)

High Expectations

Third quarter expectations and multi-year estimates are very favorable for PayPal. Analysts anticipate that earnings increased to $0.94 in the third quarter, representing approximately 54.6% year-over-year growth. Meanwhile, revenue is estimated to have increased to about $5.4 billion, a growth rate of 23.6%.

For the year, analysts expect to see about 20.6% growth in earnings, with estimates of $3.74 and rising to $5.54 by 2022. Additionally, revenue is forecast to grow by approximately 20.4% in 2020, 19.4% in 2021, and 18.2% in 2022, leading to revenue of roughly $30.2 billion in 2022.

Analysts Are Bullish

Analysts are positive on PayPal, with Susquehanna International Group, LLP’s analyst, James Friedman, raised PayPal’s price target to $235 from $220, keeping a Positive rating on the stock. Friedman cited the economy’s increase in debit transactions, which costs PayPal less than credit card transactions. Barclays Investment Bank’s Ramsey El-Assal also sees growth ahead for PayPal and raised the firm’s price target to $235 from $228, keeping an Overweight rating on the shares.

Positive Outlook

PayPal appears to be thriving, despite a pandemic that has hit so many other businesses hard. The company has a reputation as one of the safest and most convenient methods for performing monetary transactions online. Top analysts offer encouraging price targets and multi-year predictions for the stock. With its financial track record and continued potential for growth, investors have an opportunity, which is why hedge funds have been so bullish.

The global technology platform for business spend management designs and develops software solutions. Coupa provides businesses with the opportunity to conduct all their spending activities in one place through Coupa’s could-based suite of business spend management (BSM) applications. The company has shown flexibility in meeting customers’ needs. Its cloud-based suite of applications has served useful to companies transitioning to remote work during the pandemic.

Mixed Results from Hedge Funds and Institutions

Institutions have been buying, with aggregate 13F shares held increasing by approximately 2.4% to about 71.7 million from about 70 million. Looking at second-quarter activity by the top hedge funds, circumstances were slightly different. The aggregate 13F shares held decreased to approximately 21 million from about 25.3 million, a slide of roughly 17.1%. Of the hedge funds, 26 created new positions, 29 added to existing holdings, 33 exited, and 41 reduced their stake.

(WhaleWisdom)

Revenue Rises

Analysts estimate that earnings will rise to $1.07 per share in 2023, up from just $0.45 for 2021. Earnings will see an initial decline of approximately 14.2% in 2021. Still, in the long-term, upward momentum will continue bringing 79.1% year-over-year growth by January 2023. Revenue is predicted to reach approximately $1 billion in 2024, nearly double the $498.6 million estimate for 2021.

Analysts Are Optimistic Despite Valuation Headwinds

Oppenheimer & Co., Inc. raised its price target on Coupa to $285 from $265, citing Coupa’s success at penetrating the spend management market. Oppenheimer’s analyst, Koji Ikeda, is optimistic about the stock long-term. RBC Capital Market’s analyst, Alex Zukin, gives Coupa an outperform rating, increasing the price target to $300 from $245 and citing pipeline improvements and growth potential. Deutsche Bank starts Coupa with a Buy rating and an encouraging $345 price target, acknowledging its leadership in a sizeable market and the potential for market share gains.

Coupa’s Growth Brings Confident Estimates Beyond 2020

As Coupa faced some challenges amidst the pandemic, it is understandable why some hedge funds have sold. However, the company gained some impressive upward traction over the summer months and continues to see growth. Coupa’s impressive growth and future multi-year estimates are encouraging for investors.