Hey fellow investors,
I wanted to share with you my thoughts on why I believe PayPal (NASDAQ: PYPL) is about to rally and why I'm personally investing in this company.
Yes, its shares have seen a significant drop of almost 80% over the past two years, but I believe the tides are turning.
One of the core concerns surrounding PayPal has been its stalled user accounts growth. However, I see this as an opportunity rather than a sign of doom.
Competing peer-to-peer money apps may have gained traction, but PayPal's Total Payments Volume (TPV) has continued to grow, indicating a loyal user base.
Moreover, the recent move to introduce Teen accounts for its Venmo platform, allowing 13 to 17-year-olds to open accounts, is a game-changer.
With a sizable market of 25.1 million teens in this age group, PayPal now has a chance to capture a previously untapped audience. Additionally, the company is adding more payout options to Venmo, making it more appealing and potentially boosting TPV.
While we're currently experiencing an economic downturn, it's important to remember that these cycles are temporary. Morgan Stanley predicts a rebound next year, which could lead to increased disposable incomes and greater adoption of PayPal's payment processing network.
The most compelling factor for me is PayPal's relative valuation. Trading at just 2.8-times its trailing twelve-month sales and with a P/S multiple lower than comparable FinTech companies, I see this as a clear indication of undervaluation. I believe the stock is poised to rally on any positive developments.
Of course, there are risks, like any investment. If PayPal fails to execute well with its Teen accounts or struggles with user traction, growth could stall. But with a tangible plan to reinvigorate growth and an improving market sentiment, I'm optimistic about PayPal's future.
In conclusion, I've changed my rating for PayPal from “Hold” to “Buy,” and I'm confident that the stock has ample headroom for appreciation. As an investor with a multi-year time horizon, I'm excited to accumulate PayPal shares while they're still discounted.
Let's seize this opportunity together and invest wisely. Good luck to all of us!
This was written by chatgpt, but on a side note, I have actually put in $125k into PYPL at a price average of $72.4428848886. Proof here.
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