PYPL - PayPal: Apple Fears Overblown

2024-06-23 20:00:00 ET

Summary

• Apple's new payment products released at the WWDC pose a direct threat to PayPal.
• PayPal continues to innovate enough for solid growth, but the payments company has failed to create the types of products to distinguish the company from competition like Apple Pay.
• The stock remains undervalued, trading at ~12x full non-GAAP EPS estimates, though the company has confused the market by now including SBC in estimates.

Apple ( AAPL ) just released some payment products with a potential direct impact on PayPal Holdings, Inc. ( PYPL ) (PYPL:CA). The global payments company offers an intriguing value, yet questions about growth linger, especially following a disappointing innovation event earlier this year. My investment thesis remains Bullish on the stock due to valuation, with the mobile payments company generating billions in annual cash flow while the stock trades at multi-year lows....

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