PayPal Stock: The Dip Should Be Bought


  • PayPal stock basically went nowhere for the past few weeks, while the S&P 500 continued to see new ATH. I think this should change shortly.
  • Despite a drop in the total number of users, transaction volume is also growing, which is positive and allows the company to generate a substantial amount of free cash flow.
  • PayPal’s FCF should help surpass the pessimistic EPS consensus for 2024 if the company continues to repurchase shares at similar volumes and maintains its net income growth rate.
  • I expect Wall Street to re-evaluate the current valuation discount, potentially leading to stock price growth and a shift in market sentiment.
  • Therefore, I believe the current weakness in PayPal stock, its dip, should be bought.

:Silhouette of upset Australian woman over PayPal logo


My Thesis Update

After I initiated coverage of PayPal Holdings (NASDAQ:PYPL) stock at the end of January 2024, the stock price continued to remain in its usual price channel that started in mid-last year. So the stock

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.

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