Analyzed $PYPL today and I still don’t like the business. The company has a narrow moat in e-commerce with lots of competition. No way to predict how the payment landscape will look like in 10 years.
A big hope is Venmo. However, the popular app only contributes around 4% to revenues and isn’t profitable. Wouldn’t base an investing thesis on the highly growing app alone, as I have seen some investors do.
Historically, PayPal has made relatively substantial acquisitions and it wouldn’t surprise me to see them acquire a company for a few billion soon. Management picked good targets in the past and integrated them well, so that’s definitely on the plus side for the company.
I bought after the drop @ $74 and sold on the come up at $96. Wasn’t in love enough to hold long term; bought in June, sold in September. Easy +29% gain. I feel like I shouted probably learn some TA but some of the time it just seems like common sense on these swing trades. One my September entry; never seen valuation like this.