r/stockmarket
I bought 5,000 PYPL shares. The bottom is in.
Bought 5k PYPL shares citing cheap valuation, strong cash flow, and multiple expansion, while noting MSFT's superior long-term value.
- Inexpensive valuation relative to earnings and cash flow, with potential for multiple expansion if business proves stable.
- Enormous scale across payment businesses generating substantial free cash flow without near-term financial distress.
- Higher probability of doubling from current price compared to blue-chip peers, attracting value investors.
- Risk of market sell-offs or company-specific disappointments could push the stock down to $35 in the near term.
I just bought 5,000 PYPL shares because it seems to me \~ $40 is the bottom. What happened to the buyout rumors though? The stock appears inexpensive relative to its earnings and cash flow.
The company still has enormous scale through PayPal, Venmo, Braintree, and other payment businesses, and it continues to generate substantial free cash flow.
\\$45 within a few weeks:\\ reasonable possibility.
\\$35 within a few weeks:\\ less likely, but not impossible if the market sells off or company-specific news disappoints.
My two cents.
PayPal still generates billions in cash, has a large user base, and doesn't appear to face near-term financial distress.
If PayPal merely proves that its business is stable, investors could decide it deserves a higher multiple. That's where the upside comes from.
If I had to bet on which company will be more valuable in 10 years, I'd pick Microsoft without hesitation.
If I had to bet on which stock has a better chance of doubling from today's price, I'd probably pick PayPal. That's why value investors are interested in it despite all the negativity.
Still, I’m mostly here because the bottom is in.
so you just explained me why I should buy PayPal lmao.
Not only do you use PayPal when you use Venmo, have you ever rented an AirBnb? Paid for an Uber? Bought tickets on StubHub? Made reservations through OpenTable? The back end payments processing for those sites is done by BrainTree. PayPal owns BrainTree. PayPal is probably handling your transactions all the time without you even realizing it.
Thats proof to get out
For a dying business model the % of ownership is absolutely irrelevant. They are absolutely getting crushed by apple and google and wero in Europe.
"dying business" literally improved every single metric every single year. Haven't even had a single quarter of declining revenue unlike your favorite stocks like Meta and Google
For a network product that does not increase user base and other more relevant metrics like revenue, this is a bold statement.
On the front- and backend side they are absolutely helpless.
On top of that, their customer service does not exist and they refuse to comply to basic banking regulations.
Only market sentiment. I can't find a single reason in their numbers, not one.
People hate the stock for no reason while Paypal's numbers keep growing. If you hold for 5 years, you're going to get a very nice return
In the last two years:
- Total Payment Volume (TPV): $+17.0%
- Net Revenue: $+11.4%
- Non-GAAP Operating Income: $+9.2%
- Non-GAAP EPS: $+4.1%
- GAAP Net Income: $+23.1%
- GAAP EPS: $+35.6%
- Adjusted Free Cash Flow: $+52.4%
- Active Accounts: $+3.1%
Sorry I missed it by 3 months, I don't track the exact month I sell my positions at. I have better things to do
I'm sorry your vision is cloudy.
Futures where they become more relevant exist as well as where they dont. Regardless, the present situation is a company buying back 15% of outstanding shares a year (at this price) and paying out a 1.4% dividend without taking on debt to do so. That is a compounding monster. In any future where they become more relevant through any of the current growth initiatives, the share cannibalization + higher revenues and profits + PE rerating turn this into a 3-4x within 5 years and mega profits for anyone who can see a better future for the company.
And I wish them the best. I choose to put my money elsewhere. Im hoping to get out at -25%.
I had a glimmer of hope with the new CEO and the stable coin talk.
Terrible time to sell but GL to you. Stable coin has 4B USD in it btw. If Lores can find 500M of cost savings a year that go straight to profits it will be huge, and with Venmo and BNPL making progressively larger parts of the entirety things should be just fine. There are too many vectors of possibility and a solid company with gigantic buybacks
I'm glad your a fan, I'm happy for you. I didn't say I was selling now. I've been holding for years waiting to break a little closer to even. Eventually I'll cut my losses and make money off whatever I salvaged instead of have dead money sitting there. But I'm not short of cash on the sideline right now, so I'll wait it out.
tell him bro. Everyone crying bagholder doesnt see the price has cratered and how powerful the buybacks are at this point in time.
That's exactly it. Buying 5 years ago would not have been a good move. But seeing where things are today, the past price doesn't matter. Only future performance in which we look at the past to get an idea of the future. Idk, I'm not here to convince anyone else. The market will catch up eventually.
I had plenty of time to be excited as it kept climbing. I mean in hindsight it’s easy to say for me but I had very logical reasons to believe it was oversold. We saw how crippled the world economy was with only TSMC producing chips. Intel is a USA chipmaker and they would never let Intel fail.
Yepp, i bought Meta at 160$ and double my money, wanted to buy intel at 20$ but had no cash laying around, i'm buying every single paypal stock i can at these prices
PayPal and Intel are such different companies lol it takes no brain to realize that competing with Intel is reserved for a few vs all the banks and fintech companies who have taken market share from PayPal. I use PayPal more than the normal person and I will switch to Apple Pay as soon as merchants allow me…
I know people that work there and it’s a fucking mess. Then they brought in printer man as the CEO…like he’s the right guy to fix it. Good luck.
This has happened to me before and when I see people talking about this, all I can think of are these fatcats watching the same candle and going 'oh look! our order has been filled! We've been waiting this whole time!''
It really depends. Averaging down when the entire market is getting exploded and everything is probably going to rebound is probably a good idea.
Averaging down on a consistently losing company might not be the best plan.
I agree paypal is much rarer now, but Venmo is very common and paypal owns venmo
do you see the double bottom that has formed at 39-40? Feb’26 and May’26 are the two bottoms.
Ok? I’ve done plenty of trading and convinced myself that I’ve seen similar patterns. Usually they’ll hold somewhat since other people also see and trade around it but that doesn’t mean the price won’t keep falling.
I’d rather buy a rising stock and miss out on the initial gains than try and time it and have it keep falling. Catching falling knives is where most of my losses have come from.
There should be such people, someone still buying XRP too...
That would be fucking amazing. That would mean they would buy back 70% of the company which means a 333% return for shareholders.
Very ambitious. I have 1000 stocks, which is all my money except for my house. I'll give it around 5 years
Im at $45. Waiting to sell at $60
i hope you're a millionaire and just throwing around expendable cash. EVEN IF you're right that the bottom is in, that's an ABSURD purchase when there are so many better places to put that money. so many companies with a higher probability of payoff in the short AND long term.
you could have, SHOULD HAVE, put that money in SOFI at $16. hell, even LULU would have made more sense. but what do i know, one of my highest conviction stocks is Duolingo. i'm a true believer, but i'm not claiming to know the bottom, either. the bottom is irrelevant to me.
and i think if you really understood the company, you wouldn't be leading with something as superficial as "the bottom is in."
It’s all my money.
bro. PLEASE be kidding. i'm not even trying to hate on you or anything, but out of all the companies you could choose from, that just doesn't make sense. i would implore you to sell at least half when you're in the green. they'll probably see 45-50 some time this year, but...
you're stressing me out and it ain't even my money! :)
“They’ll probably see 45-50 some time this year” so you’re saying I’m likely to get 10-20 % gains within six months? Sounds like it was a good decision to camp all my money in PYPL, then.
If they just continue with current FCF and don't grow at all, you're getting 15% return annually
"5.8% revenue growth"
"the business isn't growing"
what lmao
lol worst company in the world, absolute scum
The discrepancy in target pricing is red flags. There are many other safer bets for growth in the market.
I used to utilize paypal quite a bit. Never did anything illegal or sent money around to strange folks or anything.
One day my account was just... closed. For some kind of "activity". They would provide no clarity on the situation. I had used this account for YEARS. I'm talking like 15 years or more. A fairly regular user, just to make payments shopping online.
A few weeks later their stock started tanking. Ive been laughing as I watch them plumet to the bottom. Fuck paypal.
This has almost nothing to do with the post.
I think they still have 6B in buy backs for 2026 and close to 13B allowed.
Does anyone still use paypal?
Catching a slowly falling knife instead.
PayPal? The company that’s got customers not paying their credit.
PayPal? The company with about 100+ competitors offering seamless payments.
PayPal - the company with no moat anymore aside from its logo.
Good luck with your investment. It might go back up a bit, it’s not a stock I’m touching with the knowledge of payment processors currently on the market.
And just fyi. It wouldn’t be Microsoft either.
Massive debt ratio compared in future with its capex spend.
Its programs? Written by Claude overnight.
It’s subscription services - being replaced daily
Xbox? Maybe..🤔
So I'm trying to understand what the issue is with the stock exactly. The earnings have continued to rise but the price targets have continued to go down. I mean its 7.5 P/E and its a digital payment in a growing digital world. There is a lot of pivots they could take with blockchain defi or conventional lending. What am I missing other than people have hurt feelings from bagholding?
I would expect you to use share price to make your decisions. I don't.
With respect to this particular stock yes, i think its a fair point to bring up a 94% decline when talking about my faith in the company.
Best of luck with your investment. Cheers