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Summary
- PayPal Holdings is one of the largest companies in the global digital payments market.
- The company’s aggressive use of a share repurchase program, its policy of cutting operating costs, and year-over-year revenue growth have helped it beat analysts’ consensus estimates in recent quarters.
- PayPal’s revenue for the three months ended September 30, 2023 reached $7.42 billion, up 8.3% year-over-year and beating analysts’ expectations by $40 million.
- PayPal’s TPV was about $387.7 billion in the third quarter of 2023, an increase of 15.1% year-on-year, even as key central banks maintained high interest rates and relatively low global economic growth.
- I’m initiating coverage of PayPal stock with a “buy” rating.
PayPal Holdings (NASDAQ:PYPL) is one of the largest companies in the global digital payments market.
Thesis
Despite a challenging year for PayPal bulls in 2022, its share price was able to break through a resistance line dating back to August of the previous year, marking a positive shift in Wall Street’s perception of the company’s prospects and calling into question the pessimism prevailing among retail investors regarding it.
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