They're in the penalty box. During lockdowns, people were doing a lot of e-commerce, but will be going out. Also, PayPal spent a lot of money to add customers but that didn't pay off. The CEO has his work cut out for him. If they miss a third quarter in a row, then they're in trouble. This is a show-me story. That said, he is adding to this core position because valuations are so low.
It can still go lower. The sector is already competitive and getting more so. No rush to enter this. He'll wait for this stock to climb 10% before considering it. Don't catch a falling knife.
It was growing 20% annually. He bought this with high hopes. He was wrong. PayPal will be lucky to see 18% growth this year; he's doubtful. When a growth stock tumbles like this, it gets crushed. Trades at 26x earnings. Wells Fargo just put an overweight call on this. PayPal needs to demonstrate consistency. This one will remain a loser.
Has sold stock out of portfolio.
Recently stock has been challenged with poor earnings and financial reports.
Large competition in the sector (Apple Pay etc.)
High growth/tech stocks are not a good place to be right now.
Many Nasdaq stocks are half of what they used to be. The digital space is under pressure. This stock should see support at $85. Look at value stocks, not high growth stocks.
(A Top Pick Apr 01/21, Down 57%) Brutal. Tremendous 2020 and 2021, but fake accounts were concerning. People aren't spending as much digitally. Still guiding for double-digit revenue growth. He still sees potential to earn $10 EPS 4 years from now. He's looking past the sentiment and accumulating.
Down about 2/3 from its peak. Still has about 22% to go to reach FMV, $86, which may turn out to be a low on the stock. Long-term valuation chart shows that it has tended to bottom at or fairly close to its intrinsic value.
Sells at 25x earnings and this has guided weak, more pessimistic than deserved. Shares are down 50% already, but she growth rate remains more than decent.
Off 25.5% today, after reporting last night. Q4 was pretty good, but the problem was the guidance. He has a small position, around 1%. He's trying to decide what to do. He doesn't like buying things that are going down. He's going to sit tight, not buying or selling, wants to have it settle. Analyst price targets have moved down to $185-190. Buy at your own risk. It's a massive company, one of the biggest fintech companies out there, so it's not going away.
After reporting last night, shares plunged and plunged, down 25%. A house of pain. A disaster. Can't win 'em all. PayPal had a good 2021 with lots of new customers, good monetization and a digital wallet that resulted in 20% growth. Not bad. But Omicron and inflation have reduced online sales. Instead of 50 million new accounts coming, it could be as low as 15-20 million. The next quarter could also be disappointed. The game isn't over, though. They could get bigger in cryptos, buy Robinhood or buyback massive quantities of shares. He made a mistake in not dumping this when he heard they were looking for takeover targets like Pinterest.
It sold above 50x PE and has declined a lot, perhaps headed to 10x like a bank even though it's growing 20%. When shares are hammered like this it means growth will either slow or the sellers are just wrong. He just bought some at weakness.
(A Top Pick Dec 31/20, Down 27.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PYPL has triggered its stop at $180. To remain disciplined, we recommend covering the position at this time. We will look for better opportunities.
A fine company. He owned but moved to sidelines in 2020. It is expensive and now other forms of payment are preferred. It is a crowded field so he has no exposure to pure payment processing. Also doesn't like participation in crypto currency. Most digitally oriented banks are the best place to be.
PayPal Holdings Inc. (PYPL) Frequently Asked Questions
What is PayPal Holdings Inc. stock symbol?
PayPal Holdings Inc. is a American stock, trading under the symbol PYPL (previously PYPL-Q on Stockchase) on the NASDAQ (PYPL). It is usually referred to as NASDAQ:PYPL or PYPL