Key insights
- The author suggests that PayPal (PYPL) may be undervalued at its current price of $43.8, citing a low P/E ratio of 7.5. Despite concerns about growth prospects and increasing competition from Apple Pay, Google Pay, and other payment platforms, the author believes the downside risk is limited. The possibility of acquisition by companies like Stripe, Apple, or Google is also mentioned as a potential catalyst.
Is there any smoke around Stripe, Apple or Google buying parts of this business. I don't have a lot of confidence in paypal growth, I still use it on some checkouts because it's easy but apple/google pay probably have taken a good chunk.
But at a 7.5 PE there doesn't seem to be a lot of downside risk vs a lot of high flying tech stocks.
Seems like it's worth a small flyer at this price (again I don't see how they capture a bigger market or grow besides venmo but zelle, apple cash, cashapp many other competitors) but the price after earnings seems ok to take a small position.