PayPal (PYPL, Financial) shares posted their best quarter since they were spun out of eBay in 2015. The Company appears to be an early beneficiary of the seismic social and economic shifts that occurred as a result of COVID-19. While much of the global economy ground to a halt during the month of April, PayPal managed to grow total payment volume (TPV) and revenue more than +20% during the month, which was a sizeable acceleration from the brief slowdown seen in March. We expect PayPal will continue to enable more merchants to quickly shift their offerings to an online or contactless payment experience, in the face of dramatically changing consumer behavior. Indeed, on this score the Company has recently stated the acceleration in e-commerce in certain customer sectors has grown so much over the past few months, from a pace measured in years they had previously expected pre-COVID-19 to a pace measured in just a few months.
From David Rolfe (Trades, Portfolio)'s Wedgewood Funds second-quarter 2020 shareholder letter.
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