๐ณ Loading PYPL at $56.85 & $57.53! ๐ฆ๐ฅ
โI am scaling into PayPal (PYPL). I just added even more to my long-term portfolio with two strategic entries at $56.85 and $57.53.
โWe are buying a cash-flow machine at "deep value" multiples usually reserved for dying industries, but PayPal is far from dead. Here is why I am double-downing. ๐๐
โ๐ The Setup: Deep Value Meets Technical Floor
โWe are currently witnessing one of the most significant valuation disconnects in the S&P 500.
โP/E at All-Time Lows: PYPL is trading at a forward P/E of ~11.5x. Let that sink in. This is a company with a massive network effect trading at a discount to the broader market average (which is ~22x). It's objectively one of the cheapest growth stories in tech. ๐๐ธ
โThe "Iron Bottom" Support: DCA-ing into $56.85 and $57.53 which were timed entries. We are retesting a major horizontal support zone ($55.80โ$58.00) that has held firm despite multiple sell-offs in late 2025. ๐ก๏ธ
โMassive Share Buybacks: PayPal is using its $5B+ in annual free cash flow to cannibalize its own shares. At these depressed prices, every dollar of buyback is supercharged, drastically increasing EPS for us long-term holders. ๐
โ๐ The Catalyst: The 2026 AI & Ads Pivot
โ2026 is the year the "narrative" finally catches up to the "numbers."
โAI-Driven Commerce: PayPal's new Transaction Graph Insights and collaboration with Microsoft (Copilot Checkout) are turning transaction data into a goldmine. They are using AI to predict consumer behavior better than almost anyone in the world. ๐ค๐ง
โVenmo Monetization: The "Pay with Venmo" feature and Venmo debit card adoption are finally hitting critical mass. Venmo is transitioning from a "free social app" to a high-margin revenue engine. ๐ฑ๐ฐ
โPayPal Ads Manager: The launch of their internal ad network at the start of 2026 allows merchants to target customers at the point of intent. This is a high-margin revenue stream that the market is currently pricing at zero.
โ๐ก Final Verdict
โThe market is pricing PayPal like a legacy bank, but it's operating like a high-tech data powerhouse. Buying at sub-$58 in my opinion is fair value. Will be looking forward to PYPL 2026 earning numbers.
Trade Safe, Tiger Friends! [666]
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