PYPL is undervalued and presents a buying opportunity due to low valuation multiples and improving fundamentals.

PayPal. Yes, this name, you know, some might say: " Be careful with this name , especially with the collapse of the deal or the potential collapse of the Stripe deal." Yes. Why do you prefer PayPal? This looks scary. Why do you prefer PayPal?

Stripe? It doesn't matter. That was a cheap offer. It was a joke. Look, this is a golden opportunity, Tom. Here's why: The stock price is down 80% from its 2021 highs. The stock is undervalued.

Price, value, profits and revenue have increased by 50% since a peak of over $300. Free cash flow exceeds $6 billion annually. They own 15% of the company, and have already bought nearly 30% of the shares. Therefore, free cash flow increased by 27%.

Now, what's happening on the business front? Why did the stock price drop so much? Profit margins have decreased. Why have profit margins declined ? Not because the company's performance has deteriorated, but because Braintree's business, which processes payments when using Uber or purchasing tickets from Ticketmaster, etc., and which has low profit margins, has grown at a faster pace than payments through well- known brands.

When people think of PayPal, they think of the payment button. We have achieved greater cash flow per share, greater revenue per share, and greater earnings per share. Profit margins have declined , but are now accelerating again.

They are rebuilding their brand with a fast checkout feature, improving the merchants' conversion rate by 51%. Therefore, they can now charge higher fees because it increases the merchant's profits.

There are many positive things that happen with PayPal. They are pioneers of technology-based e-commerce. They recently made a deal with Muse, a subsidiary of Meta. They have advanced technology with co-pilot, with the advantage of profiting from conversations.

So, if you use any chat platform, you probably pay via PayPal. There are a lot of good things happening there . Incidentally, they may already be acquired through this partnership with Meta.

They developed a partnership. Advertising work is extremely valuable. Well, PayPal's advertising business is still in its early stages . Mark Grether, who founded the advertising businesses at Amazon and Uber, now runs them at PayPal.

We believe this could add $ 1.5 billion to $2 billion in free cash flow , which will also contribute to accelerating profit margins. We can't help but love this project. PayPal shares are trading at nine times earnings.