2024-02-12 09:00:00 ET
Summary
- The PYPL stock's pre-earning performance has exceeded expectations, with the management's weak FY2024 guidance unfortunately reversing its upward momentum.
- However, with the October 2023 bottom holding up, we believe that the fintech's consistent profitability and healthy balance sheet may convince long-term shareholders to remain optimistic.
- PYPL investors only need to patiently wait out the transitionary period, since multiple growth initiatives/ layoffs have already been introduced by Q1'24.
- Readers must also note that it is more prudent for the management to set a lower bar and then, beat those estimates over the next four quarters.
- With the selloff being overly done, we continue to rate PYPL as a Buy for patient investors, with the stock's upward re-rating a likely occurrence over the next few years.
We previously covered PayPal Holdings ( PYPL ) in November 2023, discussing the pessimistic sentiments surrounding the declining Active Accounts and the impacted transaction margins from the dilutive Braintree segment....
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For further details see:
PayPal: Overly Punished For Prudence And Growth Initiatives - Maintain Opportunistic Buy