PayPal reported earnings but is back to 60$ down for the year.
Q2 Numbers
Enterprise Value: 60B
Revenue Growth +8% Y/Y to 7.9B
Number of Transactions +8% Y/Y
Payment Volume + 11% Y/Y
Active Users Y/Y Flat (But up 2 Quarters in a row)
Fwd 24 FCF: +20% Y/Y to 6B
EPS Increase of 17%.
5B of stock bought back in LTM with management raising their guidance to buying back 6B of shares in the next year (1/10 of current company valuation).
15B in cash, 9B in debt
Fwd P/E: 14 (Excluding 1.5 SBC Expense even…)
What gives…? Why is this business so cheap?
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