PayPal: At The Risk Of Being Disrupted (Rating Downgrade)
Contributor since 2017 / 33804 Followers
Summary:
- PayPal continues to prioritize margin expansion amidst a transition in revenue growth.
- I’m growing cautious on the stock amidst broader tech euphoria.
- Investors should not ignore the company’s slow growth rates relative to competitors as they may be signaling long-term disruption.
Images By Tang Ming Tung/DigitalVision via Getty Images
It took a while, but the market has finally come around on PayPal (NASDAQ:PYPL). Revenue growth continues to decelerate but margin expansion has helped to soften the blow. Management is guiding for an eventual acceleration in revenue growth next year, but
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, META 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.
I am long all positions in the Best of Breed Growth Stocks Portfolio.
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.
Sign Up For My Premium Service “Best of Breed Growth Stocks”
After a historic valuation reset, the growth investing landscape has changed. Get my best research at your fingertips today.
Get access to Best of Breed Growth Stocks:
- My portfolio of the highest quality growth stocks.
- My best deep-dive investment reports.
- My investing strategy for the current market.
- and much more
Subscribe to Best of Breed Growth Stocks Today!
