Selloff in PayPal stock post-3Q earnings driven by worries o...

Selloff in PayPal stock post-3Q earnings driven by worries over competition, supply chain issues, and stimulus rolling off.

Supply chain issues are not likely to drag on for too long, and competition is not as intense as the market perceives.

PayPal's valuation premium versus the market has reverted to pre-COVID levels, implying near-term weakness is priced in.

PayPal remains a quality stock with secular growth tailwinds in e-commerce and FinTech, with a healthy balance sheet and strong cash flow generation. BUY on temporary weakness.