PYPL - Embedded Expectations Analysis - 2019 08 20
ï€ PayPal Holdings, Inc. (PYPL:USA) currently trades at historical highs relative toUAFRS-based (Uniform) Earnings, with a 35.2x Uniform P/E. However, even at these levels, the market is pricing in bearish expectations for the firm, and management has concerns about their growth, pricing, and acquisitions.
ï€ Specifically, management may be concerned about expense increases related to recent acquisitions and about their ability to execute future pricing changes. Moreover, they appear concerned about the sustainability of recent revenue growth, and they may lack confidence in their ability to reaccelerate margin dollar growth in the second half of 2019 and keep TPV strong. Finally, they may be concerned about continued declines in revenue driven by lower transaction volumes, and they may be downplaying concerns about their strategic investment portfolio and monetizing Venmo.
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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