2024-02-15 11:03:56 ET
Summary
- PayPal's recent earnings call strengthens the bull thesis and the company's imbalanced risk/reward at its current valuation.
- The erosion of PayPal's take rates has been a key concern, but the recent earnings call showed an inflection.
- First Look featured solid innovation, albeit PayPal is still playing "catch-up" to competitors.
- I rate PayPal's moat a 'C' and valuation an 'A', and reiterate my Strong Buy rating.
Overview
I initiated coverage of PayPal ( PYPL ) in late December with a Strong Buy rating. My thesis was that PayPal represents a very imbalanced risk/reward at its current valuation. There are many legitimate aspects to the PayPal bear case, but these are overshadowed by the extremely compelling valuation and reasonable growth outlook. You can read more about the bull and the bear case here .
In this article, I'd like to present the reasons why I believe PayPal's recent earnings call strengthened my thesis, provide an overview of "First Look" innovations, and present an analysis of PayPal's competitive advantage....
Read the full article on Seeking Alpha
For further details see:
Analyzing PayPal's Competitive Advantage After Q4 Earnings