2024-04-07 15:44:26 ET
Summary
- I believe the recent shift in PayPal Holdings, Inc.'s management has been a real game changer Mr. Market ignored, but you shouldn't.
- PYPL issued disappointing EPS guidance for 1Q 2024 and FY2024, but if the management keeps focusing more on margins (the CFO's words), I think the current fears should appear overblown.
- PayPal launched a new service that enables US customers to use PYUSD for international payments through the Xoom platform. I think this niche may bring more growth to the top-line.
- Anticipating a gradual increase in PayPal's margins alongside improved profitability, I expect a corresponding rise in its valuation multiples, making a strong case for the stock to appreciate.
- I'm reaffirming my "Buy" rating and foresee a continuation of the recovery rally in PayPal stocks for the next few months.
My Thesis
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For further details see:
PayPal Holdings: Don't Ignore The Game Changer