PayPal: M&A Bids Don't Change The Weak Growth Profile (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha. It is shared here to showcase my work and track record. I also publish full 5-Minute Pitches on this site. This will be behind a paywall, accessible to Hunter Tier members.

Elevator Pitch

• PayPal Holdings, Inc. faces stagnant organic growth as active account numbers remain flat and average payment value per transaction barely tracks ahead of inflation.
• Upward momentum in US retail sales figures presents a potential high-frequency indicator for positive transaction volume surprises in the coming quarters.
• If Stripe's bid for PayPal goes through, investors buying in now can make a quick 6%. But the odds of the deal happening are reducing.
• PYPL stock is trading at a narrower historical discount relative to its peers while near-term consensus earnings expectations have undergone downward revisions.
• Technical chart analysis indicates balanced forces between buyers and sellers on the weekly timeframe, pointing toward a period of sideways price consolidation.

Read the full article here.

Spreadsheet Model