Author holds PayPal and Super Micro Computer into earnings, arguing both are undervalued on forward P/E with beat-driven upside catalysts.
PYPL — LONG Author holds 502 PYPL shares at a $55.42 average, arguing the stock trades near 10x forward P/E versus a historical 20x+ and has beaten EPS estimates for 10 straight quarters. The catalyst is tomorrow's Q4 FY2025 earnings, where consensus is $1.29 EPS and $8.78B revenue with guidance of $1.27-1.31; a beat plus a decent FY2026 outlook (~8% EPS growth) could pop the stock 6-10%. Stated risks are competition from Apple Pay/Stripe eroding take rates and guidance decelerating too much, which could cause a dip. Author is holding through earnings.
I'm in on PYPL with 502 shares at $55.42 average. Forward P/E around 10x vs historical 20x+
SMCI — LONG Author bought 433 SMCI shares at $30 flat, calling it an AI datacenter bet at a forward P/E of 8x versus a 25x sector average. The catalyst is tomorrow's Q2 FY2026 earnings with $10-11B revenue expected (100% QoQ growth), $0.49 EPS, and a $13B backlog mostly Blackwell/Vera Rubin systems; margin recovery to 10-12% via liquid cooling and reaffirmed FY2026 guidance of $36B+ could trigger a short squeeze with short interest around 15-20%. Stated risks are margins staying stuck or backlog delays. Author is holding through earnings.
I also have SMCI earnings tomorrow, got 433 shares at $30 flat (just bought). This one's my AI datacenter bet, trading at stupid low forward P/E of 8x vs sector average 25x
This Reddit post, published February 02, 2026, features u/Perfect-Dimension373 discussing PYPL, SMCI. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: u/Perfect-Dimension373 · Tickers: PYPL, SMCI