PayPal: Mr. Market Isn’t Getting It


  • PayPal declined extremely steeply last week following earnings, but it seems like Mr. Market might be a bit irrational again.
  • Not only could PayPal beat expectations, raise guidance and report solid first quarter results, the business model still seems to be intact.
  • But PayPal’s stock continues to decline and is trading now for very depressed valuation multiples, which is generating a real bargain for investors.
  • Of course, we saw a declining number of active accounts for the first time – and this should be watched closely as it could generate a long-term problem for PayPal.

At the beginning of last week, PayPal Holdings (NASDAQ:PYPL) reported its first quarter results and although results seemed fine on the surface, the market reacted quite heavily to the results and PayPal lost about 15% in the following trading days and