2024-05-01 05:28:15 ET
Summary
- PayPal reported strong financial results for Q1'24, resulting in a significant $0.18 per-share earnings beat.
- The firm's account base remains challenged, but total payment volume and transactions per account show growth.
- PYPL generated impressive free cash flow in Q1, allowing for aggressive stock buybacks.
- Shares have considerable revaluation potential in FY 2024.
PayPal ( PYPL ) reported better than expected financial results for the first fiscal quarter on Tuesday that included a decent earnings beat and strong total payment volume growth. PayPal, however, continues to struggle with its account base. I still believe that the enormous amount of free cash flow that PayPal's payment network generates creates an asymmetric return opportunity for growth investors. With a P/E ratio of only 11X, however, I believe the risk profile remains significantly skewed to the upside after PayPal’s Q1’24 results and I see continual momentum to support the current rally!...
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PayPal: The Rally Has Momentum