"I view PayPal as a compelling turnaround candidate — the business now does roughly $33B in revenue vs $25B in 2021, trades for about $42B market cap (~8x free cash flow/earnings) after an ~85% drawdown from the highs, and acquisition interest plus a massive user base make it worth buying on further due-diligence."
Analyst's reasoning:PayPal has grown revenue from $25B in 2021 to roughly $33B while the market cap compressed ~85% to around $42B, implying an approximately 8x free cash flow multiple. Acquisition interest and a massive user base add optionality that the depressed valuation does not reflect.
Publish-day $45.34 · 04/02
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"I’m constructive on PayPal because durable free cash flow (roughly $5.3–5.6B), low FCF multiples (~7.5x), steady user scale (Venmo) and aggressive buybacks create an asymmetric long-term payoff even if revenue growth is modest."
Analyst's reasoning:PayPal's $5.3–5.6B free cash flow, low FCF multiple, Venmo user scale, and aggressive share repurchases create an asymmetric long-term payoff that compensates for modest near-term revenue growth expectations.
Publish-day $45.48 · 04/06Target $94.006mo
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"PayPal was among Michael Burry's recent software purchases and fits my broader view that beaten-up payments/software names merit a look as part of a potential software recovery, even if it's not on my personal 12-stock long-term list."
Analyst's reasoning:PayPal's appearance in Michael Burry's recent software purchases reinforces the analyst's view that beaten-down payments names merit consideration in a potential software recovery cycle, even without a personal high-conviction long-term position in the stock.
"PayPal's share repurchases won't lift the stock if the company's story continues to deteriorate, so I take a negative view absent narrative improvement."
Analyst's reasoning:PayPal's continued narrative deterioration means buybacks are unlikely to provide lasting share price support without a genuine improvement in the company's payments revenue story. The negative view persists as long as the fundamental growth trajectory fails to recover.
