Paypal (PYPL) reported earnings 30 days ago. What's next for the stock?
PayPal stock remains a buy, with significant gains achieved from previous recommendations, but faces potential short-term resistance and risks. The financial sector's growth contrasts with rising household debt and declining savings, raising concerns about consumption sustainability. PYPL is recovering from a downtrend, aiming for a long-term uptrend, but caution is needed as it encounters critical resistance levels.
PayPal is forming a bottom at long-term support, backed by solid financials, as reported in the Q2 2024 earnings report.
PayPal's intrinsic value is $125 per share, representing 75% upside, even while accounting for a loss of market share. If the management were to use 100% of FCF toward buybacks, they could repurchase all outstanding shares within the decade. A stark contrast to the "dead money" argument. Fastlane, PayPal's new passwordless checkout solution, is now rolling out. It significantly improves merchant conversion rates and consumer experience, a win-win situation for both.
Strategic partnerships between major companies like PayPal Holdings Inc PYPL and Adyen NV ADYEN are raising the bar for efficiency and consumer convenience. Their new project, Fastlane by PayPal, is set to revolutionize the checkout process for millions of U.S. users, particularly targeting enterprise and marketplace clients.
PayPal's new CEO has been focusing on improving the consumer experience to drive higher growth in its PayPal-branded business. It's fixing its price structure in the unbranded business to drive higher profits.
Despite increased competition, PayPal is becoming a stronger business.
PYPL's new management has delivered promising performance metrics, while raising its FY2024 guidance, thanks to the growing monetization of its existing fintech offerings. This is on top of the new growth initiatives through Fastlane and PayPal Ads, with it likely to continue driving user growth and accelerating top/ bottom-lines. With another beat and raise quarter likely in the FQ3'24 earnings call, we believe that PYPL remains a compelling growth stock for opportunistic investors.
Two of our contributors agree that this turnaround play could be a home run for patient investors.
Shortly after PayPal (NYSE: PYPL) announced a partnership with Dutch payments firm Adyen to offer Fastlane, PayPal's checkout tool for enterprise and marketplace customers in the United States, its stocks soared to a 52-week high, and Wall Street analysts have expressed optimism.
PayPal Holdings Inc's PYPL Fastlane is gearing up for a major boost thanks to its newly expanded partnership with Adyen. Adyen will now distribute Fastlane to its domestic enterprise and marketplace clients.
PayPal stock has outperformed the S&P 500 since my previous update, validating my bullish thesis. Management has shown glimpses of brilliance as its turnaround is finally in sight. PayPal is making progress in the branded and unbranded space, underscoring its improved execution.