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?
https://www.youtube.com/watch?v=rLji2I3bSOA