If company improves revenue,EPS, and reduces shares outstanding, does the share price eventually have to go up? $PYPL


Hello,

I have been investing on my own for a bit over a year and just wanted to ask.

Assuming a company can grow revenue, improve non gaap eps, at least keep their margins similar or the same, and do buybacks, does share price have to eventually go up?

I have owned PayPal for about a year now at a mid 60$ average, and from what I can tell they are improving every metric except total active years. They are buying back lots of stock, and they have way more cash than debt.

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Some cons I can think of:

Tons of competition

Lots of payment apps now

It’s not really innovative.

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But the numbers seem to be good…?

Revenue up 10% Y/Y

FCF expected to be > 5B

Non GAAP EPS growth is supposed to be double digit improvement

17B in cash, 9B in debt in the shorter term.

Just wondering what you guys think, I’m thinking about selling at a slight loss since it seems like no one thinks these numbers are good enough and the stock keeps going down.


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