PayPal Holdings Inc. (PYPL)
PayPal's Earnings Release Sell-Off Is A Late Christmas Gift
I doubled my PayPal position around $80 today after Wall Street ignored strong earnings and guidance, a buy decision supported by bullish underlying technical trading indicators. PayPal's 8%+ free cash flow yield is compelling, especially with plans to retire 20% of shares over three years, using $19 billion in buyback authorization. PayPal/Venmo's increasing consumer adoption and ease of use make this stock a top pick for digital payments and online banking exposure.
PayPal Holdings Was Punished For Nothing
PayPal's Q4 FY2024 results showed solid growth in TPV, revenue, and active accounts, but conservative guidance led to a 13% stock sell-off. Despite the dip, PayPal's fundamentals remain strong with a stable EBIT margin and significant buyback plans, making the stock undervalued. The shift from growth to value is causing investor churn, but the stock's fair value suggests a potential 20-47% upside.
Why Is PayPal Stock Down After Earnings?
In this video, I will go over PayPal's (PYPL -13.17%) fourth-quarter earnings report. Watch the short video to learn more, consider subscribing, and click the special offer link below.
PayPal: Sell Now To Avoid Growth Challenges In 2025
Despite mild positive beats in Q4 results, I have a pessimistic outlook on PayPal due to poor revenue quality via stagnant active account growth and falling transactions per active account. I expect revenue growth challenges to persist in FY25, driven by Braintree renegotiations that would lead to further volume declines in transactions per active account. On the positive side, the Company's credit risk metrics have improved, and the stock trades at a 27% discount to peers on a 1-yr fwd PE basis.
Final Trade: SNAP, PYPL, SPYV, MRK
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
PayPal shares plunge 12% despite earnings beat as growth slows in card processing
CNBC's MacKenzie Sigalos joins 'Closing Bell' to discuss PayPal's share drop on weak payment volume.
PayPal Transaction Margins and Payment Volume Drive Growth, Eyes 2025 Growth With Strong TMD Ahead of Investor Day: Analyst
JP Morgan analyst Tien-tsin Huang maintained an Overweight rating on PayPal Holdings, Inc PYPL.
PYPL Q4 Earnings Top Estimates, Shares Fall on Margin Contraction
PayPal's fourth-quarter 2024 results benefit from strong payment volume amid challenging macroeconomic conditions.
PayPal Shares Slide as Transaction Growth Per Active Account Slows
PayPal's fourth-quarter earnings results showed slowing growth along several metrics, as well as continued traction in the company's branded checkout initiatives. Total payment volumes were up 7% year on year to $437.8 billion, which was lower than the 9% annual growth logged in the third quarter, according to a Tuesday (Feb. 4) earnings presentation.
PayPal Q4: Progress, but Concerns Linger
Here's our initial take on PayPal's (PYPL -10.07%) fourth-quarter results.
PayPal Stock Falls Despite Earnings Beat, Strong Outlook
The payments stock is suffering Tuesday under the weight of high expectations. Here's what you need to know.
PayPal Stock Gaps Lower Despite Earnings Beat
PayPal Holdings Inc (NASDAQ:PYPL) stock is down 9.9% to trade at $80.61 at last check, brushing off a top- and bottom-line beat for the fourth quarter due to contracting margins.
