PayPal: It's Always Darkest Before The Dawn

  • PayPal Holdings, Inc.'s stock has declined significantly, presenting a buying opportunity as it remains undervalued with a favorable risk-reward ratio despite short-term struggles. Q1 2025 results show minimal revenue growth but strong operating income and EPS growth, though free cash flow declined sharply. Management maintains optimistic long-term growth targets, expecting double-digit growth in transaction market dollars and non-GAAP EPS, supported by share buybacks and cost improvements.