Should I Buy PayPal (PYPL)? — Finance YouTuber Analysis

The YouTuber is selling PayPal because the new management's strategy no longer aligns with his original investment thesis, which was based on re-accelerated growth. He believes the company is shifting towards a more conservative, stable business model with minimal growth, focusing on maintaining current growth rather than accelerating it. This change in direction, despite the 'stupid cheap' valuation, makes the stock unsuitable for his portfolio goals.

“So, I'm probably going to be out on the stock and be selling the stock because to me, I bought it under one premise and now clearly they're not trying to just make a CEO change to continue on that premise. They're clearly going to go back and shift the business back to a safer business, a more stable business. And just that's not what I bought PayPal for.” — ▶ 12:00

The YouTuber is buying PayPal as a turnaround story, noting its focus on higher-margin products like branded checkout and buy now, pay later, and aggressive cost-cutting measures. He highlights the company's low P/E ratio of 9 compared to the S&P 500, suggesting significant upside if it re-rates closer to market multiples, even without rapid growth.

“What stands out to me the biggest is actually the PE ratio of just nine. This is actually less than half of the S&P 500. So, if PayPal were to just reach where the S&P 500 is at, this would be a $100 stock.” — ▶ Watch clip

The YouTuber identifies PayPal as a consumer discretionary stock poised for a significant run. He believes that once the current semiconductor stock frenzy subsides, capital will flow into undervalued consumer discretionary names, leading to an '18 to 24-month insane bull run'.

“PayPal. This is another one of these stocks that gets thrown in with the consumer, right? With PayPal and with Venmo, 25% down year to date. The run will be insane.” — ▶ 44:40

The YouTuber holds PayPal, acknowledging it is currently down 31%. They view this as part of the investment process, accepting that not every idea will succeed, aligning with Peter Lynch's philosophy.

“NJ.com und PayPal sind vergleichsweise große Position, die derzeit 25 bzw. 31% im Minus sind. Doch auch das gehört für mich dazu, denn nicht jede Investitionsidee wird aufgehen.” — ▶ Watch clip