PayPal: How Long Can The Market Be Wrong?


  • PayPal reported fourth quarter results and while the results were solid, guidance was rather disappointing.
  • Despite declining active accounts and declining gross margins, PayPal still has a wide economic moat around its business in my opinion.
  • And the stock remains deeply undervalued – even when calculating with rather cautious growth assumptions.

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PayPal Holdings, Inc. (NASDAQ:PYPL) continues to be a huge disappointment for investors. Following earnings last week, the stock declined as much as 11.5% the next trading day and although it recovered a bit on Friday, the stock is

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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