Author believes PayPal is heavily discounted, citing a historical parallel to GE's turnaround. Market pessimism over competition may be overdone; growing total addressable market supports re-rating. A contrarian long on a beaten-down, high-quality payment processor with secular tailwinds. Continued share loss to competitors (e.g., Stripe, Square), margin compression, or macro slowdown in e-commerce.
Author believes PayPal is heavily discounted, citing a historical parallel to GE's turnaround. Market pessimism over competition may be overdone; growing total addressable market supports re-rating. A contrarian long on a beaten-down, high-quality payment processor with secular tailwinds. Continued share loss to competitors (e.g., Stripe, Square), margin compression, or macro slowdown in e-commerce.