2024-02-13 10:14:49 ET
Summary
- PayPal reported their Q4 earnings on the 7th of February, which showed a solid performance.
- The stock initially rose after hours, but quickly declined due to the company's 2024 guidance of flat EPS growth.
- The guidance was very likely conservative. The company guided for growth in Q1 of 2024 and I believe revenues should grow in each quarter this year.
- My bull thesis remains intact, with my previously discussed intrinsic value of $129.45 a share being maintained.
Introduction
I previously wrote an article on PayPal (PYPL) in December 2023 where I walked through their market opportunity and explained why it's a strong buy - showing the calculations for an intrinsic value of $129.45 per share, implying a heavy undervaluation at the current prices. PayPal have just recently posted their Q4 results and by the reaction of Wall Street and retail investors you would assume this was a disaster, as the stock sold off 11.24% in the day after their earnings....
Read the full article on Seeking Alpha
For further details see:
PayPal: The Q4 Overreaction Is A Buying Opportunity