From Nasdaq: 2024-08-02 16:48:04

PayPal stock surged 13.4% in July after beating second-quarter estimates. Revenue hit $7.9 billion, up 8% year over year, with earnings per share at $1.08, up 17%. Despite slowing transaction margins in recent years, PayPal is showing growth in active accounts and partnerships.

The latest quarterly report solidified PayPal as a growing fintech business. The company’s transaction margins have been a concern, but improvements in its unbranded checkout product, Braintree, are prompting optimism for long-term stability.

With its stock trading cheaply at 2 times sales and 10 times free cash flow, PayPal management’s aggressive share repurchases indicate confidence. While this doesn’t guarantee stock growth, it signals a belief that the stock is undervalued and management wants to take advantage before it rises.

Investors may want to consider other stocks over PayPal, as the Motley Fool’s Stock Advisor team did not select it as one of the 10 best stocks to buy now. Past recommendations like Nvidia in 2005 have yielded significant returns, indicating the potential for substantial gains elsewhere.



Read more at Nasdaq: Why PayPal Stock Jumped 13% Last Month