Core Insights - Wedgewood Partners' third-quarter 2025 investor letter indicates that AI stocks remain a focal point for Wall Street, with the Wedgewood Composite achieving a net return of 5.9%, underperforming compared to the S&P's 8.1% and the Russell 1000 Growth Index's 10.5% [1] Company Performance - PayPal Holdings, Inc. (NASDAQ:PYPL) is highlighted as a significant stock in Wedgewood's letter, with a one-month return of 3.23% and a 52-week loss of 13.34%, closing at $70.05 per share and a market capitalization of $66.924 billion on October 21, 2025 [2] - Despite an 18% growth in earnings per share and an 8% increase in adjusted transaction margin dollars, PayPal was a leading detractor in portfolios during the third quarter [3] - PayPal's Venmo revenue experienced double-digit growth, supported by new monetization initiatives, and the company has improved its economics with its Braintree processing segment, which is expected to enhance revenue growth [3] Market Position - PayPal is not among the top 30 most popular stocks among hedge funds, with 89 hedge fund portfolios holding its shares at the end of Q2 2025, down from 92 in the previous quarter [4] - The investment community acknowledges PayPal's potential but suggests that certain AI stocks may offer better upside potential and lower downside risk [4]