PayPal: TPV Up, Transactions Down And The Real Story Behind The Low P/E
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The Sharpe Quest138 FollowersFollow5ShareSavePlay(15min)CommentsSummaryPYPL’s branded experiences segment is expanding, but flat active accounts and declining transactions signal constrained core growth and limited user engagement. Margins are improving as PYPL shifts toward profitable growth, yet volatile cash conversion and rising credit losses highlight underlying business risks. I maintain a Hold rating, seeing fair value at 10x–14x P/E ($55–$75), with limited margin of safety and a wait-and-see stance on FCF consistency. hapabapa/iStock Editorial via Getty Images PayPal plunges and the market is split Today I’m covering a company that is polarizing most investors. Some see an opportunity, others see fair value. So I’m initiating coverage of PayPal Inc. (PYPLThis article was written byThe Sharpe Quest138 FollowersFollowWith a degree in Finance and Accounting and previous experience in financial advisory, I use The Sharpe Quest to share my path as an independent investor and market analyst. My approach mixes long-term conviction holdings with tactical sector rotations, driven by the belief that investing isn’t about being right, it’s about making money. I focus on undercovered opportunities and momentum-driven sectors. All views are my own and not financial advice.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.