BIGC - We Are Buying More PayPal Stock Despite A Disappointing Start To 2024
2024-02-09 10:03:40 ET
Summary
- Despite PayPal Holdings, Inc.'s solid Q4 outperformance, and the recent introduction of new features and cost-savings initiatives aimed at restoring growth and margin expansion, PayPal's flat guidance for 2024 was a setback.
- However, a deeper dive would reveal that the recently implemented strategies are in the works and underpins acceleration in PayPal's recovery prospects exiting 2024.
- The company's momentum in Europe and impending operational tailwinds also remain overlooked value accretive factors to the stock.
- Taken together, we believe PayPal's prospects for a sustained trajectory of long-term profitable growth, as well as its consistent capital returns program underpinned by robust cash flows, remain underappreciated at current levels.
Admittedly, the latest introduction of revolutionized checkout features at PayPal Holdings, Inc.'s ( PYPL ) "First Look" event was underwhelming. The disappointment had essentially carried over to the latest Q4 earnings release , where management had guided flat transaction margin dollars and EPS for the year despite recently announced optimization efforts....
We Are Buying More PayPal Stock Despite A Disappointing Start To 2024