"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…”