Ok, so it’s considered ‘cheap’ based on valuations and some assumptions on decent growth - they went up already a bit since the beginning of April. Did you already open a position / what would be a good entry price for you? Thanks in advance.
Hi Wouter, thanks for the question! This article is a first look post so I do not have a position in PayPal. I do like the company at any price here below $70 for sure.
There is just no room in my portfolio and the positions I currently have are at least as good or better so this one probably won't make it in but it is still an attractive opportunity I wanted to put out there.
Thanks for your reply, a good ‘problem’ to have ;) I am also watching QXO (and upcoming earnings). Did they make your portfolio, and at what price? I do think they are capable, but it does feel highly speculative…
Sell-side is guiding for 5/6% revenue growth, and decreasing FCF conversion. Also, I think they face sizeable competition risk from Stripe (for B2B) and Apple Pay (for C2C).
I agree with the sell side on the fact their competition is getting much better very quickly.
It is unclear how soon it becomes an issue though with a market growing as fast is theirs is. Before I would take a position I would need to get crystal clear on the industry landscape. And why PayPal will be fine for the next 3 ish years.
Ok, so it’s considered ‘cheap’ based on valuations and some assumptions on decent growth - they went up already a bit since the beginning of April. Did you already open a position / what would be a good entry price for you? Thanks in advance.
Hi Wouter, thanks for the question! This article is a first look post so I do not have a position in PayPal. I do like the company at any price here below $70 for sure.
There is just no room in my portfolio and the positions I currently have are at least as good or better so this one probably won't make it in but it is still an attractive opportunity I wanted to put out there.
Hope that helps give you some context!
Thanks for your reply, a good ‘problem’ to have ;) I am also watching QXO (and upcoming earnings). Did they make your portfolio, and at what price? I do think they are capable, but it does feel highly speculative…
QXO did make it into my portfolio but the specifics on weighting, cost basis, etc. I will save for my paid subscribers.
I did do an update on the position recently below I'd you want to check it out.
https://open.substack.com/pub/deepvaluecapitalbykyler/p/qxo-brad-jacobs-next-empire-begins?utm_source=share&utm_medium=android&r=280k3w
Sell-side is guiding for 5/6% revenue growth, and decreasing FCF conversion. Also, I think they face sizeable competition risk from Stripe (for B2B) and Apple Pay (for C2C).
I agree with the sell side on the fact their competition is getting much better very quickly.
It is unclear how soon it becomes an issue though with a market growing as fast is theirs is. Before I would take a position I would need to get crystal clear on the industry landscape. And why PayPal will be fine for the next 3 ish years.