Paypal Holdings Investment thesis

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.

Source: PayPal Deep Dive - StockOpine’s Newsletter