PayPal: I Was Optimistic On A Turnaround Narrative... But The Numbers Say Not Yet (Archive)
PayPal’s fundamentals remain weak, making its higher-than-usual peer valuation look unjustified.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- PayPal's price-to-value strategy with Braintree is helping drive modest transaction margin growth.
- But many other key metrics such as payment volumes, TPVs, and active accounts growth are all posting disappointing figures.
- PYPL's valuation discount to peers is narrower than usual, which, I believe, is unjustified given weak fundamental performance.
- The PYPL vs SPX500 charts look like they are ready to go lower.
- Strong retail sales data in PayPal's key markets is a source of upside risk. But fresh tariff threats may curb the benefits of PYPL here too.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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