PayPal: Dead Money, Until It Isn't

  • PayPal is prioritizing quality growth by shifting away from unprofitable volume, which pressures gross revenue but boosts transaction margin dollars. Despite slow top-line growth and market skepticism, PayPal trades at historically low multiples, offering significant upside potential as fundamentals outpace valuation. Aggressive share buybacks, robust free cash flow, and a resilient competitive moat position PayPal for double-digit EPS growth and long-term value creation.