PayPal: Rewriting The Rules In A Transitional Year


  • PYPL is trying to bounce back after three years of underperformance, and its valuation hitting rock bottom all-time lows after 80% sell-off.
  • PayPal’s first-quarter results show a 9% revenue increase and a 14% rise in Total Payment Volume, driven by enhanced features in Venmo and strategic market expansions.
  • Bolstered by Fibonacci retracements and a positive Volume Price Trend, PayPal’s stock is projected to reach $79 by the end of 2024, balancing bullish indicators with existing market volatility.
  • In 2024, PayPal targets $5 billion in FCF and buybacks, bolstering shareholder value supporting our $90 DCF valuation.

:Silhouette of upset Australian woman over PayPal logo


Investment Thesis

Our investment thesis for PayPal Holdings, Inc. (NASDAQ:PYPL) remains robust, maintaining our strong buy rating for the stock from our previous coverage, with a medium-term target price of $90, supported by strategic shifts

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.

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.

Author of Yiazou Capital Research

Unlock your investment potential through deep business analysis.

I am the founder of Yiazou Capital Research, a stock-market research platform designed to elevate your due diligence process through in-depth analysis of businesses.

I have previously worked for Deloitte and KPMG in external auditing, internal auditing, and consulting.

I am a Chartered Certified Accountant and an ACCA Global member, and I hold BSc and MSc degrees from leading UK business schools.

In addition to my research platform, I am also the founder of a private business.

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