2024-04-13 12:00:07 ET
Summary
- PayPal's new management is making significant changes to improve execution and regain market confidence.
- The company's tepid forward guidance indicates cautious optimism and a focus on not overpromising and underdelivering.
- PayPal's stock price has been recovering, but it will still face scrutiny from the market to assess its execution in the next four quarters.
- With the market still not fully appreciating PYPL's growth thesis, high-conviction investors should capitalize on the market's pessimism.
PayPal Holdings, Inc. (PYPL) investors have endured another roller coaster ride over the past two months, following PayPal's relatively weak guidance at its fourth-quarter earnings call in early February 2024. As a reminder, I upgraded my thesis on PYPL to a Buy pre-earnings, as I assessed that buying accumulation was constructive. However, I didn't expect PayPal's outlook to be more cautious than anticipated, leading to a steep post-earnings selloff....
Read the full article on Seeking Alpha
For further details see:
PayPal: Misunderstood Growth Story Spells Opportunity