2024-04-28 14:42:54 ET
Summary
- PayPal's conservative reset of expectations sets them up for a strong buy, with upcoming earnings expected to surpass initial expectations.
- The integration of AI and new innovations are expected to revitalize PayPal's core services and increase market appeal.
- Despite recent challenges, PayPal's new CEO is eager to beat financial forecasts and raise low valuation expectations, making the stock a compelling buy.
Investment Thesis
I believe PayPal's (PYPL) conservative reset of expectations for this quarter (via the guidance they gave last quarter) sets the company up for a strong buy despite recent underwhelming quarters. The fintech’s upcoming earnings announcement has set expectations at a consensus EPS estimate at $1.22, up 4.31% YoY. Revenue estimates stand at $7.52 billion, a 6.77% rise YoY. I attribute this to the company’s strategy of offering a more attainable performance benchmark. I think these numbers will prove conservative in hindsight, setting them up to surpass initial expectations.
With this call, I expect the company’s focus on product innovation, particularly through the integration of AI, to develop roots and show how it is revitalizing their core services and expand its market appeal to recover the active accounts it lost over the previous quarters and increase transaction volumes at their merchants....
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PayPal Q1 Preview: Major Changes, Major Quarter (Rating Upgrade)