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  • Writer's pictureIshfaaq Peerally

Buy PayPal PYPL Stock?

After a great 2020/2021 where PayPal stock $PYPL gained 250%, the stock is now down 80%. PayPal had a great time during the pandemic with increasing online sales but now as sales are slowing down, the revenue growth of the company has also slowed down.

The market also expects a recession soon and online sales are going to fall further. Besides, there is rising competition for PayPal from tech companies such as Apple $AAPL and Google $GOOG and even banks such a $JPM and $BAC .

As far as financials are converted, PayPal has a very good balance sheet and they have been growing their revenues at and cash flows at a reasonable rate in recent years.

The problem is that with the slowing down in growth, the market the same earning multiples as before. Is that enough to make PYPL undervalued?

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