Should YOU BUY PayPal Stock NOW? - PYPL Stock Analysis
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- Опубліковано 16 жов 2024
- PayPal stock soared to an all-time high of $300 per share in July 2021, only to crash 80%, recently closing around $60. Is PayPal (PYPL) stuck in neutral, or is it a diamond in the rough ready for a massive comeback?
In this comprehensive PayPal stock analysis, we dive into the company's background, explore its business model, and dissect its valuation using a detailed DCF model. Whether you're interested in buying crypto with PayPal or seeking undervalued stocks to invest in, this video covers everything you need to know.
We'll break down:
1. Background & Business Model - Understand how PayPal has evolved and its mission to democratize financial services.
2. Opportunities & Challenges - Weigh the positives and negatives, from market competition to insider trading signals.
3. Valuation - Utilizing a three-statement financial model and DCF of PYPL to determine if it's one of the best stocks to buy now.
Is now the right time to buy PayPal stock? With 427 million accounts and 25.7 billion transactions, PayPal remains a juggernaut in the payment processing space. Don’t miss out on this potential diamond in the rough!
📈 Check out the DCF of PYPL:
💡 Understand PayPal's business model and market position
🔍 Get insights on PYPL stock price prediction and PYPL price target
🔔 Subscribe for more PYPL stock reviews and the latest PayPal stock news
💬 Comment your thoughts on whether you think PayPal stock is one of the best stocks to buy now!
Enjoy this in-depth PYPL analysis and learn why PayPal might be an interesting investment opportunity despite recent stock declines.
👉 If you found this analysis valuable, make sure to LIKE, SHARE, and SUBSCRIBE to our channel for more expert insights on undervalued stocks and stocks to buy now!
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Remember, investing in the stock market involves risks. Please consult with a financial advisor to assess your individual needs and risk tolerance before making investment decisions. Ken Freeman’s insights are aimed to educate and should not be taken as definitive investment advice.
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Thanks for the excellent analysis. I bought PayPal on the market dip. I've been thinking about it for a while, and finally pulled the trigger
Thanks for the comment!!! And thanks for those kind words!!! I am glad that my analysis helped clear things up for you 😊 At the end of the day, it’s all about the numbers and what they say rather than our emotions. PayPal is a cash machine and they have been forgotten due to other sexier Tech opportunities, but as the market gets rocky and people look for safety, they will looks towards PYPL, good luck🍀👍🏼
Love these videos man, so much detail and effort put into each, subscribed :)
@alexng7977 Thanks for the comment!!! I appreciate the kind words!!! Honestly, it’s 10-20 hours of effort for a 20 minute video but for comments like this, it’s all worth it 💪🏼🤩👍🏼
I loaded up on pypl 🚀 now being patient for the takeoff to the 🌙
Thanks for the comment!!! Patience is key, this is not a volatile stock, but it is definitely undervalued so, it should only be a matter of time. Good Luck!!!🍀👍🏼
So I’m late to getting to this haha! Wow thanks so much for this incredible break down!! I knew it was a buy but now I know why!
I hope ya’ll got in at 60$ and are gonna enjoy the ride up after rate cuts!
@jcspaziano Better late than never!!! 🤣
You got it Brother!!! 💪🏼
Happy to validate what you already knew 😉
I’m glad you enjoyed the analysis 😃👍🏼
Great analysis earned a new sub keep up this format 👍🏼
Thanks for the comment!!! And thanks for the feedback!!! This is the format I am rolling with. I release a new analysis every Friday at 6am EST so, please feel free to check it out 😃👍🏼
Yep. pypl is a good stock
@quatrical Thanks for the comment!!! I obviously agree with your sentiment, but take a look at some of the comments when I released the video. Many people thought I was crazy 🤪
As always, only time will tell, but I’m pretty confident in PYPL as a good stock 🤓👍🏼
You were spot on my brother
Thanks for the comment!!! Hopefully this is just the beginning of the positive news!!! This stock still has a lot of room to run!!! 📈
Paypal is flatline and will remain so until they break 75$, then everyone will start having FOMO and start driving the stock up.
Thanks for the comment!!! From a technical analysis perspective, you may be right. The stock has definitely been flatline / range bound. From a fundamental analysis perspective, PayPal has a clean balance sheet, operating margins are expanding and they generate positive & growing cash flow so, the value is there. Personally, I think that investors are focused on other “sexier” tech stocks so, PYPL is forgotten. As the stock moves up, it will get back on people’s radar 🤓👍🏼
Listening to your analysis, I reflected that I need to work better at my valuations :) Thanks for the great video!
Thanks for the comment!!! I would advise to not be too hard on yourself and be sure to give yourself a little grace. Just remember that I have worked on Wall Street for 20 years and have literally built thousands of models at this point so, I have worked on my craft for a very long while. Just try to get a little better every time and remember that if you take shortcuts, you are only hurting yourself in the decision making process. 🤓👍🏼
As Paypal continues to repurchase shares, the share price will eventually go up, up, up!
Thanks for the comment!!! Yes, 100% correct!!! The same or more earnings across less shares is good for shareholders. Too many people are focused on the poor stock performance recently, but "price is what you pay and value is what you get" - Warren Buffett. PayPal is growing top line revenues, cutting costs, expanding margins and generating solid cash flows. The market will catch up to PayPal and the price will rise eventually.📈🚀🙌🏼
Excellent analysis! Cheers
Thanks for the comment!!! And thank you for those kind words, I appreciate it 😃👍🏼
thanks man for your hard work and brainy video on guiding the valuation math
Thanks for the comment!!! And thank you for those kind words 😊 While many people get emotional about stocks and where they are headed, it really boils down to math. Cash flow is what determines valuation not what people “feel”. I am trying to be a voice of reason in a sea of misinformation & chaos. Even if I help just one person to realize that there are mathematical ways to determine valuation then, I have done my job 🤓👍🏼
Hey could you pls make a video about serve robotics or Pineapple Energy Inc. (pegy). Thank you 🙏
Thanks for the comment!!! I will take a look at both companies and respond back to let you know if we can do a video on them 😃👍🏼
Can you do one on Starbucks. I'm thinking of dumping it and purchase paypal
Thanks for the comment!!! I actually did a video on Starbucks but it was before the crash so I have to update it. I have added SBUX to the list my friend ☕️😃👍🏼
Appreciate the video very informative...Not sure an 8.0% growth rate and stable operating margins over 5 years is really VERY CONSERVATIVE.? We know their margins are being squeezed by the unbranded braintree segment and cost reductions have a limited glide path.
Thanks for the comment!!! I gave PYPL no benefit / improvement on transaction expenses and that is where they have gotten hammered. I did not model any further improvement in operating expenses, but they have decreased substantially to make up for the increase in transaction expenses. Wall Street consensus estimates have a median LT growth of 9.67% so, 8% is still conservative relative to that. Also, the global digital payments market is growing at a low double digit CAGR in a McKinsey study that I found, with a areas like Latin America growing at a low teens rate and PayPal will be able to capture some of that growth via the licenses it has to operate in these areas while other processors don't. I always run multiple scenarios so that we have some wiggle room. The Bear (worst case) scenario has 7.5% topline growth, along with contracting margins and I still get $80.69 which after yesterday's close of $58.07 is nearly a 40% discount. Net Net, this is an inexact science, but even if the Bear Case shows a significant discount, that's usually where I become interested. Hopefully that helps, but let me know if you have further questions and have a great day 😀👍
@@kenfreemancfa Thanks for the comprehensive and thoughtful response.!
@ronzolla8195 My pleasure!!! That's what I'm here for 🤓👍🏼
impressive. subscribed
Thanks for the comment!!! And thank you for the compliment!!! Welcome to the family 🤗
@@kenfreemancfa will you be able to review INTL after thier earnings please?
@Cifneaaric36184 Just wanted to confirm that you are referring in Intel, the chip company. Their ticker symbol is INTC. The ticker for INTL is an International ETF. Please let me know👍🏼
@@kenfreemancfa oh sorry, yes INTL. Thank you for correcting me
Haha so sorry keep saying INTL. INTC, INTEL the chip manufacturing company please! I am from overseas currently planning to pursuit CFA. Your videos are awesome. Keep up the great work!
Don’t you think that they would sell at $56 a share due to tax loss harvesting and make it be at loss that way they don’t have to pay taxes and they can re buy the shares later?
Thanks for the comment!!! Corporations operate a little differently than we do as individuals. When they sell shares, it’s a pretty big pain that involves investment banks, substantial costs, regulatory filings with the SEC, etc. so, most companies do an IPO (initial public offering) and then they don’t raise / sell equity again. When they do share repurchases and buy the shares in the public market, those shares are put in treasury at the company and they can be re-issued. They should be repurchasing the shares at these levels and it would make sense for them to re-release those shares later when the stock rises substantially, BUT that will dilute the existing shareholders so, if they can avoid do that, they should self-finance via their retained earnings. The company has cash greater than debt by $12.2 Billion so, they are very solvent. They really need to deploy the cash to grow the business. Hopefully, that helps and makes sense, let me know 🤓👍🏼
Ive been loaded at 59 for awhile, trying to get more whenever it floats at or goes below, have about 230 shares rn, it keeps flying to 65 and then dropping, never breaking 70,
Thanks for the comment!!! Ironically, after I filmed the video for PYPL, Motley Fool published an article entitled, “3 Absurdly Cheap Stocks to Buy and Hold for Years” and PYPL was one of the choices. Not sure if you can click the link (www.fool.com/investing/2024/07/17/3-absurdly-cheap-stocks-to-buy-and-hold-for-years/#) but if you Google the title in quotes, you will find it. PYPL is not a sexy AI play and it is not a Mag 7 Tech darling so, I think it is getting forgotten and pushed aside, but it has rock solid fundamentals, cash flow and profitability so, if you stick to your current strategy and maintain a long-term perspective, I think you will be rewarded handsomely. Good Luck!!!🍀👍🏼
@kenfreemancfa thanks man!, I can only hope the current new management team actually pushes for positive changes and not just sit on their sbc, as that's one of my worries, the increasingly high stock based compensation
@kenfreemancfa thanks man!, I can only hope the current new management team actually pushes for positive changes and not just sit on their sbc, as that's one of my worries, the increasingly high stock based compensation
Agreed, new management has to show some real results. I’m fine with mgmt being compensated with stock but only when they meaningfully improve the bottom line📈
You’re silly even talking about that trash stock
Thanks for the comment!!! I might be silly but my analysis isn’t silly 😜 One of my subscribers suggested PYPL so, that’s why I analyzed it. I can’t control what a stock does and whether it goes up or down and when, but I can analyze it and report my findings & that’s what I do 🤓 Investing or not investing is completely up to you and PYPL is a hard pass for you, that’s fine by me. Have a great weekend 😃👍🏼
Love your confidence @@kenfreemancfa
@romerome6968 Thanks for the comment!!! I’d say it’s more seeing a story play out many many times and knowing the ending rather than overt confidence. Numbers don’t lie. Ben Graham, Warren Buffett’s mentor said, “In the short run, the stock market is a voting machine while in the long run, it is a weighing machine.” Short-term prices fluctuate for a lot of reasons, mostly due to sentiment and popularity. Long-term, it’s all about cash flow. Imagine someone whose salary increases every year and they save and invest. People can say (that person is crazy, they are going to go bankrupt!!! (Voting (popularity & sentiment)). After many years, they are a multi-millionaire and everyone says, “Wow! Look at them, they are rich!” (Weighing). That’s a good analogy of how to view stocks and the market 🤓👍🏼
@kenfreemancfa I agree 100% .
Great video. It would be fantastic if you did a vid on Lululemon $LULU
Thanks for the comment!!! It's funny that you mention LULU because it has gotten onto my radar with the continued drop in the stock. Lululemon is on the list 🤓👍🏼