chameleonseye
In February 2025, I published my last article about PayPal Holdings, Inc. (NASDAQ:PYPL), and as the stock had already started declining from its previous temporary high, I argued that we could buy the dip. In the conclusion, I
PayPal: It's Always Darkest Before The Dawn
Summary
- PayPal Holdings, Inc.'s stock has declined significantly, presenting a buying opportunity as it remains undervalued with a favorable risk-reward ratio despite short-term struggles.
- Q1 2025 results show minimal revenue growth but strong operating income and EPS growth, though free cash flow declined sharply.
- Management maintains optimistic long-term growth targets, expecting double-digit growth in transaction market dollars and non-GAAP EPS, supported by share buybacks and cost improvements.
- PayPal's low valuation multiples and intrinsic value calculations suggest PYPL stock is a major bargain, with the potential for significant growth over the long term.
My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies).My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and History.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of PYPL, TGT 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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