Why I'm Still Bullish Despite PayPal's Challenges
Portfolio Pulse from
PayPal is considered undervalued despite challenges, with a 60% YoY increase in free cash flow and a $15B buyback. Total Payment Volume (TPV) grew 10% YoY, while revenue increased 7% YoY. Unbranded processing (Braintree) now makes up 36% of TPV, affecting margins.
February 16, 2025 | 3:15 pm
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PayPal is trading at ~15x forward earnings, with a significant increase in free cash flow and a $15B buyback. TPV and revenue are growing, but shifts in processing types are impacting margins.
PayPal's strong financial metrics, including a 60% YoY increase in free cash flow and a $15B buyback, suggest a positive outlook. However, the shift from Branded Checkout to Braintree affects margins, which could temper gains.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100