Here’s Why RGA Investment Advisors Sold PayPal Holdings Inc (PYPL)

RGA Investment Advisors, an investment management company, has released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter-end figures concealed the inherent volatility in the market, which began with a steep sell-off and ended with clarity around global trade that changed the environment for evaluating enterprises. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, RGA Investment Advisors highlighted stocks such as PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments. The one-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was -7.47%, and its shares lost 0.29% of their value over the last 52 weeks. On August 15, 2025, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $69.38 per share, with a market capitalization of $66.141 billion.

RGA Investment Advisors stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its second quarter 2025 investor letter:

"Looking purely at the fundamentals of PayPal Holdings, Inc. (NASDAQ:PYPL) between the reported financials and context on earnings calls, we would be buyers rather than sellers here. Unfortunately, someone in our orbit was the victim of a cutting-edge financial hack that used AI voice mimicry in order to compromise several personal accounts, despite two-factor authentication enabled on each.Jim Cramer Notes PayPal (PYPL)’s CEO Alex Chriss “Will Get You Where You Have to Go”

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

PayPal Holdings, Inc. (NASDAQ:PYPL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 92 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of the first quarter, which was 94 in the previous quarter. While we acknowledge the potential of PayPal Holdings, Inc. (NASDAQ:PYPL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Story Continues

In another article, we covered PayPal Holdings, Inc. (NASDAQ:PYPL) and shared the list of most undervalued value stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 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.

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