PYPL - PayPal: Just Warming Up

2024-05-06 17:21:23 ET

Summary

• PayPal released blowout Q1 earnings results.
• Only 7% of PayPal's SMB volume is processed through PPCP and only 4% of US PayPal accounts have a debit card.
• The company will no longer price-too-low — they will now price-to-value.
• Despite raised guidance, management is still sandbagging guidance.
• Management finally set the right tone this quarter.

Introduction

PayPal ( PYPL ), the digital wallet and payment processing juggernaut, recently reported Q1 earnings that blew away expectations, sending shares higher the following day.

It's not so much that Q1 results left a positive impression on the market — it was management's confidence in PayPal's future and their laser-focused execution that might have improved market sentiment for the better....

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