PayPal Holdings: Too Early For A Downgrade

Summary:

• PayPal’s stock has surged 31.8% since March 2024, outperforming the S&P 500’s 15% gain, yet remains attractively priced.
• It has seen strong financial performance, with Q3 revenue up 5.8%, record transactions, and improved active accounts, though it has seen a slight dip in net profits.
• PayPal’s innovative features and strategic partnerships, like money pooling and enhanced checkout solutions, bolster its economic moat.
• Continued share buybacks and capital deployment strategies justify maintaining a ‘strong buy’ rating, though further appreciation may prompt a downgrade.

Even though I don’t fancy myself as a growth investor, I can’t deny that there are some growth plays that I find to be attractive, especially when you consider how they are priced on an absolute basis and relative to

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.

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.

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