2024-06-12 09:46:28 ET
Summary
- Promising announcements, such as the ad business division and the Cash Pass features, could help the business improve its lagging revenue growth rates, which have suffered from a three-year decline.
- Apple's introduction of Tap to Pay, along with declining KPIs in active accounts and take rates, raises concerns about the company's market share going forward.
- Even with many company-specific risks, the stock is exhibiting a PEG of 0.24x in its valuation, indicating an asymmetrical risk profile that justifies a mid-term buy rating.
PayPal (NASDAQ: PYPL ) is the second largest company in the Transaction & Payment Processing industry in terms of TTM Revenue with $30.43 billion, only surpassed by Visa ( V ). At the same time, they rank #4 in terms of market cap after peers such as Visa, Mastercard ( MA ), and Fiserv ( FI ). Simultaneously, from a list of 43 names, this is the company from the payments processing industry, above $1 billion, with the cheapest valuation after discounting growth expectations with a GAAP PEG ratio of 0.24x . ...
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PayPal: Concerning Active Accounts Growth, But Extremely Cheap Valuation