PYPL Reports A Solid Quarter But The Stock Tanks


PayPal (PYPL) just reported solid 2Q23 earnings but the stock is tanking (-7%) in the after hours. If you’d given me the numbers ahead of time, I would have thought the stock pops. We’ll see what happens tomorrow.

Turning to the quarter, Total Payment Volume (TPV) was +11% and Revenue +7%. PYPL earned $1.16/share which is +25% and in line with estimates. Payment Transactions were an all time high of 6,074 million. 3Q23 guidance was also solid with PYPL expecting 8% revenue and 13-14% EPS growth. For a blue chip stock trading at 15x earnings, that is a pretty good quarter.

Value investing requires a lot of patience. While I thought PYPL might be ready to get going after this quarter, apparently not. However, that doesn’t mean I’m selling. Since the fundamentals are still good, I’ll hold on to my position. At some point, the market will recognize value and the stock will get going. But not tomorrow….

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