BULLISH. Business model is a cash cow. Nearly impossible to have negative EPS. This analysis is 🎯
$PayPal(PYPL.US$ offers investors an advantageous combination of stability and growth. The fintech giant, which commands a 50% share of the global payment processing software industry, has 429 million active accounts, easily making it the most accepted digital wallet across North America and Europe.
In 2021, the company increased revenue and earnings by 18% and 19% year over year, up to $25.4 billion and $4.60 a share, respectively. PayPal's knack for generating cash is rapidly improving as well -- the company capped off last year with $5.4 billion in free cash flow, equal to 21% of total sales. Sitting at the epicenter of an enormous secular growth industry, management forecasts that its total addressable market could be as much as $100 trillion. And considering its price-to-earnings multiple of 28, representing an approximately 70% discount to its historical average, investors should
In 2021, the company increased revenue and earnings by 18% and 19% year over year, up to $25.4 billion and $4.60 a share, respectively. PayPal's knack for generating cash is rapidly improving as well -- the company capped off last year with $5.4 billion in free cash flow, equal to 21% of total sales. Sitting at the epicenter of an enormous secular growth industry, management forecasts that its total addressable market could be as much as $100 trillion. And considering its price-to-earnings multiple of 28, representing an approximately 70% discount to its historical average, investors should
be swarming to buy PayPal shares.
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Thelord : Mike hunt did you buy back the shares
Mike HuntOP Thelord: Yes. Buying at 52 week lows for a company that hasn’t come close to losing money in 6 years is something I’m comfortable with. In at $81. If the downtrend does continue, my stop loss is set at $76. I would then look to reenter at any price below $76. Anytime you reenter at a price lower than what you sold at yields additional shares. IDGAF how far this gets pushed down. I will continue to exit and reenter at lower prices than I sold at. At some point the fundamentals at these prices will simply overwhelm any downtrend. My PT for 52 weeks from now is 200. That could happen EOY. In this environment of rapidly rising interest rates don’t get fooled into thinking all growth stocks are the same. There are growth stocks that run losses that have to be financed at higher and higher rates, and there are growth stocks that are profitable quarter after quarter and they become even more valuable as the cost of money goes up.
Thelord Mike HuntOP: Hope you are right
Mike HuntOP Thelord: I don’t care if they knock it down to 50. It can’t be held down. It’s a cash cow.
Mike HuntOP Thelord: The lower it goes in the short term the better. That just means more shares owned for the inevitable rise that’s based on the most important of all fundamentals,,,, profit
Thelord Mike HuntOP: Lol not bad. Are you based in Australia?
Mike HuntOP Thelord: No.
Thelord Mike HuntOP: I see. Coz I see you active in the wee hours
SpyderCall Mike HuntOP: especially profit during recession
Mike HuntOP DrMooney: That’s fine with me