PayPal Holdings (PYPL), mcap=$113bn, price $97.92 vs $74.94

– Attractive franchise with plenty of monetization opportunities and runway for growth.
– A bet on the continued growth of e-commerce – PYPL is well positioned to capture the more of the market share.
– Unfairly sold off together with fintech and crypto stocks.
– The recent CFO’s departure is not an indication of fundamental problems at $PYPL.
– Additionally, the call option on PYPL had the potential to become a de-facto digital wallet as other wallet competitors $APPL and $GOOGL are likely to face antitrust scrutiny.

– Trades at 5.8% FCF yield based on expected $5bn FCF this year and accelerating.
– Using forward multiples trades at 18x PE and 12xEBITDA, both of which are 50% discount to 5-year averages.

Exp. gain: Not specified.

Full $PYPL write-up (free guest account required):

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