Meridian Hedged Equity Fund maintained its position in PayPal Holdings during the first quarter of 2026, according to its investor letter. The fund noted that PayPal's investment thesis has been challenged by market share losses to competitors like Apple Pay and margin pressure from its Braintree processing business. The stock declined after the company reported a sharp deceleration in branded checkout volume growth and weakness in key international markets. The new CEO guided toward modestly lower adjusted earnings and emphasized the need to reinvest in product experience and loyalty programs. The fund returned 0.08% net for the quarter, outperforming the S&P 500 Index which fell 4.33%.
PayPal Holdings IncMarket share losses to Apple Pay and margin pressure from Braintree
Cboe Global Markets IncMargin pressure from Braintree processing business