Hochfeld on PayPal

Bert Hochfeld’s latest covers his thoughts on PayPal:

PayPal reported the results for its fiscal Q2 late last week.

The results were a beat, and management tried to convey the strength of the business.

There are a number of puts and takes that must be considered in analyzing this quarter for this company.

In all, it appears that growth is actual re-accelerating at PayPal and may continue to do so for some time.

PayPal’s valuation, relative to its growth rate, is actually an outlier, but an outlier in the right direction.

From https://seekingalpha.com/article/4192761-paypal-little-misun…

Matt
Long PYPL
MasterCard (MA), PayPal (PYPL), Skechers (SKX) and Square (SQ) Ticker Guide
See all my holdings at http://my.fool.com/profile/TMFCochrane/info.aspx

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Matt,

Thanks for all that you do in covering PayPal. I know that you also cover the other payment solution companies as well. While Visa and MasterCard are the titans of the industry, I truly believe that PayPal has a tremendous growth opportunity and is relatively unaffected by the “trade war”.

I think PayPal is one of those combo stocks that merges both growth and value investing and during a “downturn” would more than likely fare much better than the typical growth stock. This looks like an opportunity to buy a fairly valued growth stock with big potential.

Keep up the great work

JK

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Buying PYPL would be a way to get back more than the almost 5% Paypal gets from me when I sell things on eBay. eBay gets a little more than 10% from my sales, but is EBAY a good stock these days? :slight_smile:

If I understand correctly what I read a while back, eBay is supposed to start using another payment service, though. Right now, I don;t know if it’s even possible to avoid using Paypal to buy anything on eBay.

How much of Paypal’s income is float on people’s accounts, and how much is from fees? I personally transfer money out as soon as I get it, but some people must keep something there. They also offer an “investment” option, called Acorns.

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