PayPal Holdings Inc. (PYPL)

Bit of a value trap. Best case, it recovers and we see it at $60-65. Maybe $70. Upside potential, but better names to own in tech. There's a lot of disruption to come in the space.

Some say it's ready for a takeover, but it's not doing that well. Can't recommend any stock on the basis of whether it will be taken over or not.

Slid 31.6% last year. Are late to new technologies, like buy now pay later and stablecoins. Trades at a low 10x PE so maybe things will bounce.

No doubt the stock is cheap at 11X earnings. Cash flow is good. However, growth has stalled somewhat as competition has increased in the sector. Margins have slipped from 70%+ 10 years ago to 50% now. In addition to growth stagnation, PYPL has issued weak forward guidance, there is fierce competition, regulatory worries, and soft sector sentiment. Growth is expected to be in the 8% range next year. We do not 'hate' it as it is priced for this issues, but we would not consider buying it right now, prior to year-end portfolio positioning and perhaps tax-loss selling. 
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No doubt the stock is cheap at 11X earnings. Cash flow is good. However, growth has stalled somewhat as competition has increased in the sector. Margins have slipped from 70%+ 10 years ago to 50% now. In addition to growth stagnation, PYPL has issued weak forward guidance, there is fierce competition, regulatory worries, and soft sector sentiment. Growth is expected to be in the 8% range next year. We do not 'hate' it as it is priced for this issues, but we would not consider buying it right now, prior to year-end portfolio positioning and perhaps tax-loss selling.
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Competition has risen sharply (i.e. Apple Pay, Google Pay), so PYPL is struggling. PYPL's rates are high compared to their peers. He prefers to own the infrastructure such as Visa.

The company has some challenges, no doubt, but these are starting to be reflected in the valuation, now at just 13X earnings. EPS did beat estimates in the Q1, by 15%. PayPal is making progress with sustainable transaction-margin dollar gains, up 7% in 1Q, driven by branded checkout, Venmo and a deceleration in Braintree. The EPS beat in 1Q and maintained 2025 guidance of high-single-digit adjusted EPS gains leave room for absorbing tariff pain and allow for strategic reinvestment in growth initiatives in 2025. Adjusted operating margin widened 270 bps sequentially, paving the way for further efficiency gains. Despite fading interest-income tailwinds and slowing unbranded volume gains (2% FX neutral in 1Q), higher-margin branded transaction growth remains steady (6%). PYPL plans to buy back $6 billion of shares in 2025, with $6-$7 billion in free cash flow, after 1Q repurchases of $1.5 billion. Exposure to China is limited to under 2% of volume. While still not a favourite of ours, we think there is enough here at the right valuation now to give it some more time.
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Horrible experience owning it, and hasn't looked at fundamentals lately. Facing competition from so many angles. Good business, but not great. Valuation kind of attractive, but it's in the "too hard" pile.

Their quarter disappointed. Watch their analysts' meeting and five-year plan. The new CEO is doing a good job.

It reports Tuesday. The new CEO is returning PYPL to solid growth. Once dominant, PYPL sank to the buy-now, pay-later companies, but seems to be returning.