$PayPal(PYPL)$Seems like the company is oversold and we might expect a short term bounce. While discretionary spending might slow due to the ongoing headwinds, and PayPal has indeed guided revenue growth for 2022 slightly lower, its fundamentals remain generally intact. PayPal even guided that EPS will move to $4.07 from $3.97, even as account openings have slowed since the heights of the pandemic.
I remain bullish in the payments space. This is a very high margin business, and at these levels, PayPal looks undervalued. There is even an activist investor (Elliot Management) that has gotten involved, who is known for making businesses to be more cost-efficient and engage in stock buybacks.
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