PayPal: Priced For Failure, Poised For Success


  • PayPal Holdings remains a leading global fintech player and continues to benefit from the strong secular tailwinds behind its industry.
  • While the stock price remains stagnant, PayPal’s operational performance tells a very different story. The company continues to exhibit solid growth across its diverse range of payment businesses.
  • PayPal is heavily undervalued with a 9.5x trailing P/FCF ratio, strong balance sheet, and forecasts for continued growth.
  • Under new management, the company is prioritizing newer growth initiatives such as unbranded checkout and digital advertising.
  • Though PayPal has been undervalued for a while, accelerating share buybacks should help force the issue, resulting in faster per-share earnings growth and squeezing the stock price higher.

Fintech electronic banking mobile network technology


PayPal Holdings, Inc. (NASDAQ:PYPL) has been gaining investor attention throughout the first half of 2024, driven by its beaten-down valuation, fresh growth strategies, and several high-profile bets made by famed money managers. While longtime shareholders largely view the stock with disgust

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.

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