PayPal: Not Yet Seeing Light At The End Of The Tunnel

Summary:

  • PayPal stock continues to decline, down over 80% from 2021 highs.
  • For Q3, I see little upside in the key Bull vs. Bear debate on PayPal.
  • Market penetration of key merchants remains strong but shows little additional growth.
  • Mixed e-commerce data suggests flat in-logo penetration and potential pressure on transaction margins.
  • With PayPal’s current valuation at 12x 2024 earnings, I see it as an attractive long-term entry opportunity.

:Silhouette of upset Australian woman over PayPal logo

chameleonseye

PayPal stock (NASDAQ:PYPL) continues to trend lower, with shares now down more than 80% from 2021 highs. In 2023 alone, shares lost close to 30% in value, while the S&P 500 (SP500) is up more than 10%.


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Not financial advice.

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