PayPal: The Turnaround Is Taking Shape

Summary:

  • PayPal reported third quarter results and although results were still solid, growth is slowing down a bit.
  • Over the long run, I assume that PayPal will continue to grow its top line and improve its margins.
  • Additionally, PayPal is using share buybacks in an aggressive, but clever way.
  • The stock remains a “Buy” and is still undervalued.

PayPal Headquarters

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After PayPal Holdings, Inc. (NASDAQ:PYPL) was almost declared dead and a terrible investment in the last few quarters (after the stock declined more than 80% from its previous all-time high), it seems now like sentiment is slowly turning around and everybody

Growth year-over-year

Revenue

Total Payment Volume

Total Active Accounts

Q1/23

8.6%

9.8%

0.9%

Q2/23

7.1%

10.8%

0.5%

Q3/23

8.4%

15.1%

-0.9%

Q4/23

8.7%

14.7%

-2.1%

Q1/24

9.4%

13.9%

-1.4%

Q2/24

8.2%

10.7%

-0.5%

Q3/24

5.8%

9.0%

0.9%


Analyst’s Disclosure: I/we have a beneficial long position in the shares of PYPL either through stock ownership, options, or other derivatives. 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.

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