2024-03-26 10:00:00 ET
Summary
- PayPal's shares are trading at lower multiples due to a lack of growth in active users.
- Despite a rebound in Q4 and positive market sentiment, PayPal still hasn't fixed the major issue that caused the depreciation of its stock in recent years.
- At the current price, PayPal's upside appears to be limited.
As the stock market is reaching new highs, shares of PayPal ( PYPL ) continue to trade at lower multiples in comparison to the broad market due to the lack of growth of active users. While some investors called PayPal the next Meta Platforms ( META ) since the latter faced a similar growth issue a couple of years ago that was quickly fixed, it’s unlikely that the payment processing company will face a similar fate. Unlike Meta Platforms, which managed to quickly resolve the user growth issue, PayPal’s user count has been declining for several quarters in a row and the end of the exodus of users is nowhere near in sight....
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For further details see:
PayPal: This Is Not The Next Meta