6Mon·

Why I will soon be investing 5 digits in $PYPL (+1.69%) and see 300% potential


After a lengthy analysis, I have decided to soon make a 5-digit investment in $PYPL (+1.69%) (ticker: PYPL) soon. Here are my reasons and why I see a price potential of up to 300%:


1. undervaluation & turnaround opportunity


$PYPL (+1.69%) has fallen sharply in recent years and is currently trading well below its all-time high. The price/earnings ratio (P/E ratio) is favorable by historical standards. Many negative factors appear to have already been priced in.


2. solid business model


$PYPL (+1.69%) is one of the market leaders in online payments with a global user base of over 400 million active accounts. The trend towards cashless payments and e-commerce will continue to grow in importance in the coming years.


3. growth opportunities through new business areas


$PYPL (+1.69%) is expanding into new areas such as cryptocurrencies, "buy now, pay later" services and digital wallets. This offers enormous growth potential, especially in emerging markets.


4. strong cash flows & share buybacks


The company consistently generates strong cash flows and invests aggressively in share buybacks, which should increase the value per share in the long term.


5. analyst estimates & price targets


Many analysts have recently revised their price targets for $PYPL (+1.69%) upwards despite the current uncertainties. Some see potential of up to 200 % and more, which supports my assessment.


Risk assessment: Of course there are risks such as competitive pressure, regulatory uncertainties and economic weaknesses. However, I am convinced that PayPal can achieve a successful turnaround in the long term.


Conclusion:

With a long-term investment horizon and the current valuation, I see $PYPL (+1.69%) as a strong investment opportunity with up to 300 % potential. I therefore plan to enter the share at a 5-digit level soon. 🚀📈


How do you see PayPal? Invested or wait-and-see?

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21 Comments

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I am invested in PayPal myself and see many points similarly to yours. However, the first two points in your article are probably the weakest:

Re 1.) the all-time high was a complete exaggeration and we probably won't see the P/E ratios of that time again any time soon. A lot has happened in the world of payment providers since the ATH.

Re 2.) The business model is solid, but there is also more and more competition in eCommerce payments such as Klarna and Amazon Pay. In the area of payments in general, there is also Apple Pay and Google Pay. In the area of P2P payments, there is also the Cash App from Block or similar functions for Apple and Android in the USA.

I am not saying that there is no room for PayPal. I also see the share as undervalued, especially due to the constant share buybacks.
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@RealMichaelScott probably was :-)
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Another interesting area is advertising, where they have been able to recruit an absolute expert in Mark Grether. He built up the advertising area at Uber and will now do the same at PayPal.
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@FresherAlman thanks for the aspect :-)
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Half a year ago, everyone said Paypal was crashing.... . I'm currently up 43% and very happy :)
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@J4nh44g no, it's been penalized anyway :-) I'm buying.
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Ohjemineee, better go all in on Bitcoin
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@Ph1l1pp nope, don't bother
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@WinStreak77 maybe that will be something with the 100k target 🤭
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@Ph1l1pp what is your goal besides making stupid comments here?
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What did I reap here when I invested in PP at 54€ against the background that 7.5% of the own shares pa are bought back... there are simply people who hate the share, no idea why.
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@WinStreak77 It's in my description ^^ 50 million at 50 years old
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@Investor_in_Jogginghose not from me :) just didn't have any money back then haha.
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@Ph1l1pp very good :-) my goal is 200 million with 50 years 👆👆 to the moon.
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@Investor_in_Jogginghose if the comment was referring to me, then I can say that I have nothing against Paypal - but against people who have not dealt with topics such as bitcoin in depth enough and then want to lecture you ;)
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@WinStreak77 For my part, this is only a very conservative goal for the time being... I wish you every success
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@Ph1l1pp you sold Bitcoin yourself at 88k? that was good before the bubble burst :-)
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@Iwanowitsch did you get in perfectly :-)?
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