PayPal (PYPL)

[behappyalways]

What’s Killing Paypal’s Growth?
https://m.youtube.com/watch?v=aycwyFuamZs

[winston]

not vested

PayPal: Now Beyond Dirt Cheap (Rating Upgrade)

May 12, 2023

by Victor Dergunov

Summary

Can you believe that PayPal Holdings, Inc. stock has dropped by a staggering 80% from its all-time high?

However, there's nothing wrong with PayPal fundamentally, as the company goes through a transitory (broad market) slowdown process.

Moreover, PayPal's recent earnings results beat estimates and indicate the company is performing relatively well, provided the current economic conditions.

Nevertheless, PayPal's stock dropped even lower after its earnings results (on a "downgrade") from the experts at Credit Suisse.

PayPal has plenty of growth ahead, and at 11 times the consensus forward earnings estimate, its stock is beyond dirt cheap right now. It's ridiculous.

Source: Seeking Alpha

https://seekingalpha.com/article/460366 ... must_reads

[winston]

vested

PayPal (PYPL)

PayPal (NASDAQ:PYPL) has a Gamma Exposure Score of -$42.7 million, and its Put/Call ratio tumbled 39% versus last week.

It reported Q1 earnings per share, excluding some items, of $1.17, compared with analysts’ average estimate of $1.10. Moreover, it raised its 2023 adjusted EPS guidance to $4.95 from roughly $4.87.

However, the stock fell in the wake of the results because the company provided Q2 adjusted EPS guidance of $1.15-$1.17. The midpoint of the guidance was slightly below analysts’ average outlook of $1.17.

PayPal will benefit from a normalization of consumers’ spending on goods versus experiences.

PYPL stock is trading at a rather low forward price-earnings ratio of 12.9 times.

Source: Investor Place

[winston]

vested

This Beaten-Down Growth Stock IS A Buy

Sales of just over $7 billion were up a modest 9% from the same time last year.

PayPal no longer has a partnership with online marketplace eBay, and there are other rival payment services from Apple and Alphabet that customers can use when buying goods and services online. What this all means is that it has become more difficult for PayPal to dominate the market for online payments.

But the company is also dealing with a general slowdown in the economy, so it’s hard to say that sales growth will continue to be lackluster.

PayPal is still a well-known name when it comes to processing payments and its Venmo service is popular for transferring money between friends. And according to its recent investor update, not only are customers loyal to PayPal, but there are many incentives for merchants to use the service as well.

It’s far too early to throw in the towel on PayPal’s stock. It’s struggling and near its 52-week low, but the business is doing well given the macroeconomic conditions that exist today.

Investors who are willing to be patient may want to load up on the growth stock at its reduced price tag because this could prove to be an underrated buy in a few years.

Source: Trades Of The Day

https://tradesoftheday.com/2023/05/17/t ... are-a-buy/

[winston]

not vested

PayPal Holdings

PayPal has endured one heck of a roundtrip. Shares catapulted to north of $300 during the height of the COVID-19 pandemic. They have now shed approximately 80% of their value on the heels of increasing competition and concerns about historically high inflation.

The latter is worrisome in the sense that higher inflation reduces people’s discretionary spending power. Since PayPal is a usage-based operating model, fewer transactions wouldn’t be good news.

For example, gross domestic product for the U.S. economy retraced during the first and second quarters of 2022. Despite this, currency-neutral total payment volume (TPV) traversing PayPal’s digital networks (primarily PayPal and Venmo) still rose by 13% in 2022 and another 12% during the March-ended quarter in 2023.

Think about it this way: If TPV can sustain double-digit growth through historically high inflation and an uncertain economic environment, imagine how strong TPV will be when the U.S. enters another one of its multiyear economic expansions.

PayPal’s user engagement has been steadily improving, too. Active accounts were averaging fewer than 41 transactions over the trailing 12-month (TTM) period when 2020 came to a close. As of the end of March 2023, these same active accounts were averaging more than 53 transactions over the TTM.

I’d also add that the digital payments landscape is still very much in its infancy. Adoption is growing, with Boston Consulting Group (BCG) forecasting a sixfold increase in global fintech revenue from $245 billion in 2022 to $1.5 trillion by 2030. Even if BCG’s estimate is only somewhat in the ballpark, the consensus is for sustained double-digit growth in the fintech arena as adoption picks up.

Lastly, PayPal is historically cheap. Shares can be picked up right now for about 11 times forward-year consensus earnings. That compares to an average forward-year price-to-earnings (P/E) ratio of 35 over the past five years. In other words, there’s a very good reason I’ve made PayPal a top-10 holding.

Source: Daily Trade Alert

https://dailytradealert.com/2023/06/18/ ... 023-began/

[winston]

KKR Agrees to Buy Up to €40 Billion of PayPal’s Pay-Later Loans

by Jenny Surane

(Bloomberg) -- KKR & Co. agreed to purchase as much as €40 billion ($44 billion) of buy-now-pay-later loan receivables from PayPal Holdings Inc. in a deal that frees up the payments giant to do more share repurchases.

PayPal expects the transaction to generate $1.8 billion in proceeds, allowing it to repurchase an additional $1 billion of shares this year.

Source: Bloomberg

https://finance.yahoo.com/news/kkr-agre ... 00790.html

[winston]

not vested

PayPal reported adj. earnings (US$1.16) and revenue (US$7.3bn) for the second quarter that was in line with analysts’ estimates.

However, its shares fell 7 per cent in extended trading on Wednesday as investors were disappointed by the payments firm's quarterly operating margin miss (adj. operating margin 21.4% vs est. 22%), which were mainly due to an increase in loans provisions.

On the flip side, Total Active Accounts remained flat, with Total Payments Volume (TPV) growth of 11% YoY continuing to reflect resiliency in consumer spending.

The company guided to US$7.4bn in revenue for 3Q23e (8% YoY), with adj. earnings of US$1.23 (14% YoY).

Source: Phillips

[behappyalways]

PayPal Launches PYUSD - USD-Backed Stablecoin For Payments
https://www.zerohedge.com/crypto/paypal ... n-payments

[winston]

not vested

PayPal earnings for the third quarter rose 20% to $1.30 per share on an adjusted basis.

Revenue climbed 8% to $7.4 billion.

Total payment volume processed from merchant customers in the quarter climbed 15% to $387.7 billion.

Earnings guidance for PYPL stock for the fourth quarter came in below expectations amid expected higher investments by a new chief executive.

Source: Phillips

[winston]

not vested

PayPal earnings for the third quarter rose 20% to $1.30 per share on an adjusted basis.

Revenue climbed 8% to $7.4 billion.

Total payment volume processed from merchant customers in the quarter climbed 15% to $387.7 billion.

Earnings guidance for PYPL stock for the fourth quarter came in below expectations amid expected higher investments by a new chief executive.

Source: Phillips