Recent Earnings Show That PayPal Is Undervalued


  • PayPal reported a decent quarter related to Q4 2022, while its guidance for 2023 was more upbeat.
  • Top-line growth remains resilient despite slowing customer acquisition, showing that its diversification strategy is bearing fruit.
  • Cost cutting measures should lead to higher earnings, something that is not reflected in its valuation.

PayPal Headquarters San Jose


PayPal (NASDAQ:PYPL) is reporting improved operating trends after a difficult year, but its valuation is still quite depressed creating an interesting buying opportunity for long-term investors.

As I’ve covered in previous articles, I’m bullish on PayPal over the long


Earnings surprise (Bloomberg)


Operating margin (PayPal)


FCF (PayPal)


Valuation (Bloomberg)

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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