Paypal

Posted on | by Leon Hinde | Leave a Comment on Paypal

PayPal Holdings, Inc. – Common first-quarter results show a 9% revenue increase and a 14% rise in Total Payment Volume, driven by enhanced features in Venmo and strategic market expansions.

The number of people using Venmo has gradually increased, from a low of 3 million in 2015 to a high of nearly 78 million as of the end of 2023.

FCF, which touched $1.763 billion in Q1 2024 alone. This resurgence can be attributed to, among other factors, robust management strategies, such as buying back shares aggressively in response to the stock’s depressed valuation, which suffered from a significant pullback of 80% in the last few years.

In 2023 alone, PayPal redirected $4.4 billion to buybacks,

Paypal – Earnings Review

Posted on | by Leon Hinde

PayPal Holdings, Inc. – Common is a current holding in our US model portfolio. The stock is up 10% since being added last year and the current sell-off provides another entry opportunity.

20/11 update: Paypal remains below the 10-day average and we encourage traders interested in US stocks to track the price action, as a powerful price reversal is likely.

26/11 update:

PayPal is an opportunity to accumulate within the $150 – $180 price range. The selloff reflects a correction in the PE ratio from 80x to 40x and the investment is a bet on continued growth and a responsive reaction from the company to increased competitive threats.

This explains the selloff: 4% EPS growth and the FY21 quarterly trend of lower EPS is a concern. However, we’re positioning on the basis the market is getting overly negative on the stock.

Wait for the price to cross back up through the 10-day average.

Paypal – Buy

Posted on | by Leon Hinde

PayPal Holdings, Inc. – Common is a current holding in our US model portfolio. The stock is up 10% since being added last year and the current sell-off provides another entry opportunity.

20/11 update: Paypal remains below the 10-day average and we encourage traders interested in US stocks to track the price action, as a powerful price reversal is likely.