PayPal: Buy On Renewed Focus On Margin Expansion

Aug. 04, 2022 3:35 PM ETPayPal Holdings, Inc. (PYPL)8 Comments


  • PayPal soared after an earnings report which on the surface looked very normal.
  • Revenue growth slowed as expected and the company reduced full-year revenue guidance.
  • The company did however boost profitability projections and appears committed to driving further efficiencies moving forward.
  • The stock is cheap at only 4x sales with ongoing share repurchases and the potential for a return to secular growth.
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MacBook Pro Retina with PayPal home page on the screen


PayPal (NASDAQ:PYPL) soared after second quarter earnings results in spite of results being more or less as expected. I suspect the optimism to be due to the involvement of activist investor Elliott Management and the company’s apparent commitment

Data by YCharts

revenue growth

2022 Q2 Investor Update

total payment volume

2022 Q2 Investor Update


2022 Q2 Investor Update

capital allocation

2022 Q2 Investor Update


2022 Q2 Investor Update

efficiency opportunities

2022 Q2 Investor Update

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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.

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