PayPal Q4 Earnings Preview: Focused On Cost Cutting


  • PayPal’s Q4 earnings report will be focused on one thing, getting investors to buy into its cost-cutting narrative.
  • PayPal is no longer a fast growing business. But this insight has already been more than factored into its current share price.
  • I’m bullish on PYPL stock because I believe that paying less than 18x forward EPS for a compounder is an attractive multiple.

Woman holding iPhone 6 Space Gray with service PayPal


Investment Thesis

PayPal’s (NASDAQ:PYPL) Q4 earnings report is going to signal to investors that PayPal is serious about cost-cutting.

Particularly after we’ve seen how much investors have rallied behind beaten names that announce a plan to cut back

PayPal Stock Price
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PYPL revenue growth rates

PYPL revenue growth rates

PYPL stock valuation

SA premium

PayPal Days to cover short
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PYPL stock rating

Author’s rating on PYPL

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.

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