Entering text into the input field will update the search result below

3 Reasons To Love PayPal Today

Apr. 01, 2022 5:04 AM ETPayPal Holdings, Inc. (PYPL)15 Comments


  • PayPal stock has been underwater in recent months.
  • Short-term headwinds have governed PayPal's share price movement as of late. But I still like the long-term trajectory of this fintech behemoth.
  • Simple and sweet, let's examine three reasons to buy PayPal shares today.

Paypal and Visa WWW

SylvieBouchard/iStock Editorial via Getty Images

Let's get started

PayPal (NASDAQ:PYPL) shares have been on a roller coaster ride since peaking in July 2021 above $300/share. After dipping below $100 in early March, shares of the fintech giant have rebounded to $115. Still, PayPal is down 56% in the past six months, urging many

This article was written by

I seek out disruptive companies that are status quo killers.  I tend to gravitate toward the technology and consumer goods sectors, although I like to view myself as industry agnostic.  In spite of analyzing many different components of a company, the stocks I like to invest in have four common characteristics: superior management, strong fundamentals, attractive valuation, and a newsy catalyst. I look forward to interacting with the Seeking Alpha community.  Cheers!

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (15)

The one thing i don't understand about Paypal is their moat. Everybody mentions a moat. But what it is exactly? Moat is their size? Can they provide dramatically cheaper service than competition due to their size?

I want to like Paypal, but for me it is looking increasingly like legacy tool. A lot of old integrations, a lot of users. However all of this comes from the past years.
I checked out couple lately popular ebanking/ewallet apps and they are doing basically the same thing as PayPal.

Back in the day when bank transaction or credit card were the only tools, PayPal was really interesting. Now i see 10 different payment choices and Paypal is just one of them.

Long PYPL, with some regrets.
Maschuette profile picture
I've been watching this stock to see if or when i should jump in. Here is my 2 cents:

Before covid this stock was trading around $100 and making $.80 a quarter. During covid the stock shot up to $300 and was making $1.20/quarter. Now they are estimating $.80 a cents a quarter and the stock is trading at $100 bucks again. Future estimations are $1.2/quarter afterwards.

Based on past earnings you could argue that the stock should jump back up to $300 but i don't think anyone would make that argument. The real concern is that this stock's earnings peaked quickly and didn't jump up much even though it should have increased a bunch based on what was going on with society. Everyone thought they were going to kill it and they didn't. Why? Because they already own the space and cant grow much more. Without growth, this stock is still overpriced at $100.
oXXo profile picture
@Maschuette It actually reached $123 on 14 Feb 2020 just before covid crash. Paypal profit increased during covid as online payments and spendings increased.
Maschuette profile picture
@oXXo so what do you expect the price to do?
declanfromtrinidad profile picture
So let me make something perfectly clear @paypal the Ukrainian Legion are NOT mercenaries! We are not buying ammo or guns, the Legion supplies all that. We are buying protect/support equipment: a dedicated ambulance vehicle, gas, food, plane tix for guys to Poland,etc
@AskPayPal………paypal not releasing monies…from the dirtydozen helping in Ukraine…. @RipRawlings
bazooooka profile picture
Enjoyed the two weeks this one was in double digits
Paper_stax profile picture
I recently started selling puts in PYPL as a way to get in at a lower price and make a few dollars once my strike is breached. I don't have much to add to the comments as well as the article but I'd like to mention that as society gets further away from physical currency and more towards digital payment methods, PYPL has a bright future in this cashless world.
34x P/E. I would take a bite at half that. Yes, I know that's a $50-60 handle. If it never gets there, it's ok.

Best wishes for all.
P/E means nothing without accounting for Growth. PEG matters.
@canyon Yes ,but PE provides a tether ( a peg if you will) to reality. Growth is always an estimate,and analysts, the market, and management can be wrong, so PEG is inherently tenuous. Both are needed to estimate risks.
I originally acquired PYPL shares from its spin from EBAY.
Shares were about $30. I also at the time, took a substantial long position in call ( leap) options because as an investor and swing trader for over 50 years I felt that PYPl had a big future.
Later, after about a triple, although I had intended to keep a core position, my swing trading side emerged when one of the several serious economic crisis started rearing its head, and coupled with another buy idea I sold all shares at a healthy profit.
The Blessing and Curse of a swing trader in various markets. LOL.

Unfortunately, I missed the move to 300, but in reality it would be doubtful that I would have held a full position to that point.
In recent weeks, I’ve been buying PYPL steadily under 118.
There was some old technicals pointing to a support at $92 and it indeed hit there and then worked up from there.
My worse case price support is $72, however, doubtful it gets there unless there is a strong downdraft in the market.
Which is certainly possible under the developing major macroeconomic
shift and geopolitical crisis.

Bottom line is I feel the authors thesis makes a lot of sense.
I plan to continue to add PYPL shares and call options at various price points between 92-108 with the idea that long options will be used as a trade and shares bought now will be a core holding.
However, if some major positive developments should occur, I would quickly move to add shares at anything around 120.
But that’s not the case now and I expect a very volatile, potentially dangerous, and choppy market to continue longer than most folks think.

I’m also writing a spread of OTM covered call options for PYPL spread out over the next 9 months, because of current market conditions.
Wrote some $150 calls yesterday to create about a 6.5% yield
until year end.
While good arguments can be made about choosing other Fintech ( i.e. (PYPL vs SQ, etc, ), I feel the authors thesis is sound and offers good advice. GLTA

Long PYPL shares and Jan. 24 call options.
jesjessie profile picture
@obiwan48 i do not think human habits change quickly unless ones hand is forced , i've been surprised to see Paypal drop so much , personally i think the move has been over done as many companies will continue to use Paypal going forward as thats what they have adapted to during the covid crises
Technology Assessment Group profile picture
@jesjessie My experience is that it will take a long time to get traction by the new FinTechs. Sure, some young people will adapt some of the new payments systems...but they are young and don't know how much more robust a financial systems has to be. I've seen some of these small FinTech really screw up....and literally lose track of money. Retired financial systems guy here.
jesjessie profile picture
@Technology Assessment Group decided to step out seem to be to many headwinds in the markets also we will be going in to May soon
Alpwolf profile picture
PayPal paid around four Billion for Honey which is not mentioned
The upgrades on the platform are very attractive and are another
Building Block for PayPal.
In the age of the Internet Commerce the price paid might have been a bargain
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About PYPL

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PYPL

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.