PayPal Holdings Inc. (PYPL-Q)

Gorgeous run, and then a huge collapse. Got way ahead of intrinsic value. Recently broke support, potential to fall to $52-53. Value down there would be pretty good. He's nervous. Getting cheap, and should bounce nicely.

33 of 38 analysts have increased their outlook so stay with it.. It trades at 10X and he sees it growing at 13 1/2%. Yes there is increasing competition from Apple, Afterpay and Affirm.

Google and Apple are nibbling at its lunch. Losing market share into the pandemic, but did OK during. Losing its early-mover advantage. Better ideas out there.

Does not own shares in the company (owns Visa).
Transition to digital payments slowing.
Lots of competition in business.
Recent fall of shares very hard on investors.
Better to look elsewhere. 

Trades at a low 13x PE 2024, reiterated full-year guidance, and have maintained their market share. Hold but be patient.

The PE has plunged from 60x to 15x. Activist Elliott Mgt. is cutting costs and optimizing their existing base. Is a secular shift to digital payments.

A bit of an aggressive call, given pressure on tech stocks. Positioned very well as a digital enterprise. On a lot more platforms. Benefits from global expansion of digital payments. Trading under 20x forward earnings, good balance sheet, generating free cashflow. Activist firm is coming down hard on costs. Always execution risk, but a lot is baked in. No dividend.

They beat revenues last week by 7% and announced share buybacks. You're likely to buy this lower, but he would hold off here.

They just reported a slight topline miss, but beat EPS and guided higher. Definitely hold on.

Revenue matched estimates and EPS was about 3% better ($1.24 vs $1.198).
PayPal is in the early stages of optimizing operating performance, with a margin turnaround in 3Q22 likely to lead improvement of about 125 bps in 2023.
This will be aided by slower non-transaction expense growth, which is on track to normalize to pre-pandemic levels.
Revenue growth could be faster than the mid-single-digit growth assumed in cost planning by management.
Cross-border volumes, after being impacted severely by the pandemic, could surprise on the upside, depending on the economy.
The strong growth in Braintree volumes, launch of a commerce platform (PCPP) for unbranded checkouts for small and medium businesses, conversion of existing customers to monthly active app users, and opportunities in offline payments should provide a long runway for revenue growth.
The worst is likely over for the stock, and it now looks attractively priced at 16X earnings.
The balance sheet remains very strong and cash flow generation is very solid ($6.2B last year, with $5.5B in free cash flow). 
Unlock Premium - Try 5i Free

This has been one of his worst investments - the growth has not materialized. He prefers Visa or MasterCard. At $82 it has an attractive valuation and is still profitable.

It reports Thursday. There's so much competition now, and Paypal margins are shrinking. They laid off 2,000 or 7% of staff earlier this week to cut costs. You don't do if you feel good about your earnings. BTW, the fastest part of Apple Services includes payments; who needs PayPal when Apple payments are built into your phone?