PayPal Looks Like One Of The Most Undervalued Stocks In The Market

Steven Fiorillo
36.28K Followers
(15min)

Summary

  • PayPal's Q1 2025 performance was strong, with $7.8 billion in revenue and a non-GAAP EPS of $1.33, beating estimates by $0.17.
  • Despite doubling revenue and net income since 2017 and allocating $30 billion to share repurchases, PYPL shares remain undervalued, trading at 2017 levels.
  • I recommend shifting from share repurchases to a hybrid approach of dividends and buybacks to unlock value and attract dividend-focused investors.
  • As PYPL transitions to a comprehensive commerce platform, it offers a golden opportunity for value investors willing to look beyond market skepticism.

:Silhouette of upset Australian woman over PayPal logo

chameleonseye

PayPal (NASDAQ:PYPL) (NEOE:PYPL:CA) just delivered a great start to the 2025 fiscal year as they delivered $7.8 billion in revenue on the top line and a big profitability beat as its non-GAAP EPS of $1.33 was a

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Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.

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