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NASDAQ:PYPL
He started buying late last year and he loves the business. It was spun off from Ebay and is now much bigger than Ebay. The business continues to fire on all cylinders. It is not as big in Canada as in the US. It competes with Square but trades at a much cheaper valuation. He really likes V-N but decided to by PYPL-Q instead. (Analysts’ price target is $322.00)
Paypal earns $3.50-$4.00 per share, which is around 80x earnings. People pay for expectation of flow of cashflow. There is hype in fintech. You must marry the opportunity for the price of it. Fintech presents a big opportunity. However, is the price worth it? Would pass on Paypal, and also on Mastercard even. Too expensive right now.
$1.9 trillion stimulus relief passes into law. Never underestimate U.S. consumers wanting to spend. One name that's been under pressure is PayPal lately, trading below the January low of $225. It's bounced a bit. PayPal could be playing catch-up now. Forget about where, but how the consumer will spend.
It's down 35 points from its high. In it's last report, management reported its separation from eBay that could hurt future earnings. That is now baked into shares, so buy this now.