PayPal: Still Disrupting Or Getting Disrupted?

  • The market’s optimism for PayPal Holdings, Inc.’s Q1 beat and raise last week has faded swiftly, highlighting investors’ ongoing concerns about execution risks ahead.
  • In addition to ongoing uncertainties in the macroeconomic environment, PayPal also faces elevated competition from the Fed’s introduction of FedNow, which risks thwarting Venmo’s monetization efforts.
  • However, we believe PayPal’s raised guidance remains conservative, with additional upside likely as the year progresses with the general availability roll-out of strong-performing new features like Fastlane.
  • This idea was discussed in more depth with members of my private investing community, Livy Investment Research. Learn More »

PayPal Holdings, Inc.’s (NASDAQ:PYPL) year of transition has been off to a strong start, with the Q1 beat and raise lifting full year 2024 earnings growth expectations. Yet, the stock’s post-earnings gains that neared our $70 PT