PYPL- Embedded Expectations Analysis - 2019 06 05
PayPal Holdings, Inc. (PYPL:USA) currently trades at historical highs relative toUAFRS-based (Uniform) Earnings, with a 38.2x Uniform P/E. However, even at these levels, the market is pricing in bearish expectations for the firm, and management has concerns about their MercadoLibre investment, payment volume and revenue, and Venmo monetization
Specifically, management may be concerned about growth opportunities in their investment in MercadoLibre, flat payment volume, and the progress of Venmo monetization. Furthermore, they may be exaggerating their ability to expand margins, scale their platform, and position themselves as a partner provider for SMBs. Moreover, they may lack confidence in their ability to accelerate cross-border payment activity, sustain revenue growth, and manage transaction losses. Also, management may be concerned about declines in their share of eBay's total payment volume, the potential of their Chipotle customer engagement partnership, and their ability to meet non-GAAP earnings per share guidance
PayPal Holdings is a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. The company's combined payment solutions include its PayPal, PayPal Credit, Braintree, Venmo, Xoom and iZettle products and services. PayPal's payment solutions enable the company's customers to send and receive payments. PayPal helps merchants and consumers connect, transact, and complete payments, whether they are online, on a mobile device, in an app, or in person. The company provides proprietary payment solutions accepted by merchants that enable the completion of payments on the company's Payments Platform on behalf of its customers.
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