2024-01-26 14:11:08 ET
Summary
- PayPal Holdings is one stock that has not participated in the tech rally.
- The company faces real competitive threats from the likes of Apple Pay.
- Wall Street may be underestimating the strength of PayPal Holdings' unbranded processing engine in Braintree.
- Management is focused on generating profitable growth and returning cash to shareholders through share repurchases.
- I reiterate my strong buy rating for PayPal Holdings in spite of the boring investment thesis.
Amidst a tech sector melt-up, PayPal Holdings, Inc. ( PYPL ) has been a dead weight. The stock continues to trade at discounted valuations in spite of the company's net cash balance sheet and ongoing share repurchase program. I suspect that investors are wary of the highly visible competitive threats facing the company's branded businesses, but may be underestimating the strength of the unbranded businesses like Braintree....
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For further details see:
PayPal 'Shocks The World,' But Other Catalysts Are In Motion