Found this on a microblogging site:
- Leader in digital payments with 426M accounts which provides room for an increase in revenue per customer through additional offerings (i.e. BNPL, Crypto).
- Network effect → the high number of active users and merchants using PayPal makes the product more valuable to new users than other offerings, thus making the moat stronger.
- Digital Payments and e-commerce sales are expected to grow in double digits in five years. PayPal will be one of the winners of this trend.
- Profitable, growing and with a solid financial / liquidity position.
- The recent pullback in stock price makes the valuation appealing. We believe that PayPal could outperform the market in the next five years.