PayPal Earnings Miss Sparks Concern
📉 PayPal reported mixed Q1 earnings, missing estimates on key metrics like payment volume ($417B vs $419B expected) and net revenue ($7.79B vs estimates).
📊 Adjusted earnings per share were $1.33, slightly below the $1.31 estimated by some, though above the $1.16 consensus mentioned. Transaction margin slightly beat expectations (37.5% vs 37.4% est.).
💸 Full-year guidance midpoint for free cash flow seems slightly below expectations, and CAPEX is projected higher than estimated, raising questions about spending efficiency.
PayPal: Finding Solid Ground After a Steep Fall?
💸 Despite recent earnings irregularity, PayPal excels at converting profits into free cash flow, which surged over 60% last year due to operational efficiency.
📉 The stock has retraced nearly 80% from its highs but appears to have found solid support around the $65 level, holding stable for three years.
💰 Trading at a reasonable 17 times earnings, PayPal presents a potential value opportunity, especially for a tech sector company, given its established support level.
