2024-02-08 08:15:23 ET
Summary
- PayPal's fourth quarter earnings sheet exceeded expectations, but shares tanked 9% as the Fintech's earnings guidance disappointed.
- PayPal's total payment volume was up 15% while customers continued to use PayPal's products more often.
- The Fintech saw a boost to its operating income margin in Q4'23.
- PayPal's guidance for FY 2024 implies a 100% free cash flow return ratio.
- Shares of PayPal are a bargain and greatly undervalued.
PayPal ( PYPL ) reported better than expected earnings sheet for the company’s fourth quarter, yet shares dropped 9% on a weak outlook for FY 2024 earnings. However, the Fintech's Q4'23 results were solid with regard to all major key metrics, including total payment volume growth, operating income margin expansion and free cash flow. Since PayPal's shares are down about 9% ahead of trading, I believe we are dealing with a buying opportunity here. I am going to be an aggressive buyer today and, in my opinion, the risk profile has been skewed even more to the upside!...
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PayPal: 3 Reasons Why I Am Loading Up The Truck Today