Why PYPL is a great buying opportunity.

AI Summary

Author argues PayPal's post-earnings drop is an overreaction and buys PYPL at $45.25 based on low multiples and continued growth.

PYPL — LONG The author bought PYPL at $45.25, arguing the market overreacted to weak guidance and that the company is still growing (TPV +7% YOY, revenue +4% YOY, operating income +9% YOY). At that price the stock trades at a P/E of 9, P/B of 2.1, P/S of 1.32 and PEG of 1.15, which the author considers an acceptable deal once negative sentiment is stripped out. The author explicitly does not believe in the company's story but relies on the numbers, sizing it as a small bet. Main stated risks are terrible management guidance and a lack of innovation, though the author doubts the company disappears within a couple of years.

I personally just bought a bit at share price 45,25. Maybe could've timed it a bit better, but I think this is an overreaction.

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u/TheImpudentDog Reddit r/ValueInvesting

PYPL overreaction, cheap at 9x P/E

The author bought PYPL at $45.25, arguing the market overreacted to weak guidance and that the company is still growing (TPV +7% YOY, revenue +4% YOY, operating income +9% YOY). At that price the stock trades at a P/E of 9, P/B of 2.1, P/S of 1.32 and PEG of 1.15, which the author considers an acceptable deal once negative sentiment is stripped out. The author explicitly does not believe in the company's story but relies on the numbers, sizing it as a small bet. Main stated risks are terrible management guidance and a lack of innovation, though the author doubts the company disappears within a couple of years.

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