PYPL

PayPal Holdings Inc

Finance/Real Estate, TMT


Presented:04/20/2016
Price:$40.08
Cap:$49.30B
Current Price:$79.55
Cap:$81.33B

Presented

Date04/20/2016
Price$40.08
Market Cap$49.30B
Ent Value$41.12B
P/E Ratio36.82x
Book Value$11.24
Div Yield0%
Shares O/S1,230.00M
Ave Daily Vol9,782,645
Short Int2.60%

Current

Price$79.55
Market Cap$81.33B
PayPal Holdings, Inc. operates as a holding company of PayPal, Inc. It engages in the digital and mobile payments on behalf of consumers and merchants worldwide. The company accepts payments from merchant websites, mobile devices, and applications; and at offline retail locations through payment solutions across its payments platform, including PayPal, PayPal Credit, Venmo and Braintree products. The company was founded in January 2015 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: PayPal (PYPL)

Highlights

At a high level, the presenter’s long thesis on PayPal rests principally on his belief that the company is one of only a handful of “new economy compounders,” and that the business has proven to have a solid moat in the face of persistent competition in the space. He noted that even before the most recent Apple Pay threat, there have been multiple attempted assaults on PayPal’s model. The open question, of course, is whether the company can continue to stave off intensifying competition, but it still bears mentioning that the business has been achieving a 20% payment volume CAGR for some time now. Looking at the TAM for payments, there remains huge runway for growth and room for multiple competitors. In the ongoing transition from cash to credit/ online, the presenter believes PYPL likely will continue to be one of the main winners.

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Idea Discussion

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