PayPal: Apple Fears Overblown

Summary:

  • Apple’s new payment products released at the WWDC pose a direct threat to PayPal.
  • PayPal continues to innovate enough for solid growth, but the payments company has failed to create the types of products to distinguish the company from competition like Apple Pay.
  • The stock remains undervalued, trading at ~12x full non-GAAP EPS estimates, though the company has confused the market by now including SBC in estimates.
Halloween background. Creepy fruits on a dark background. Halloween food. Banner. Copy space.

Yulia Romashko/iStock via Getty Images

Apple (AAPL) just released some payment products with a potential direct impact on PayPal Holdings, Inc. (NASDAQ:PYPL) (NEOE:PYPL:CA). The global payments company offers an intriguing value, yet questions about growth linger, especially following a disappointing


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PYPL over 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.

The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


If you’d like to learn more about how to best position yourself in under valued stocks mispriced by the market to start June, consider joining Out Fox The Street

The service offers a model portfolio, daily updates, trade alerts and real-time chat. Sign up now for a risk-free 2-week trial to started finding the best stocks with potential to double and triple in the next few years. 

Leave a Reply

Your email address will not be published. Required fields are marked *