3 Reasons PayPal Is Betting $5 Billion on Its Own Stock
In early February, (NASDAQ: PYPL) Chief Financial Officer Jamie Miller revealed that the company plans to buy back about $5 billion of its own stock in 2024. With a market cap of only $65 billion, the repurchases would represent nearly 8% of the company's equity value.
This is a huge bet for PayPal. Now trading at a depressed valuation, buying back stock could prove a genius move. But if history is any indication, PayPal could end up rapidly destroying shareholder value.
The company has already spent $15 billion in share repurchases since going public in 2015. Most of those stock buybacks ended up destroying shareholder value given the repurchase prices were much higher than today's valuation.
Source Fool.com
Paypal Holdings Inc Stock
€58.88
0.260%
The stock is one of the favorites of our community with 51 Buy predictions and 2 Sell predictions.
As a result the target price of 78 € shows a positive potential of 32.47% compared to the current price of 58.88 € for Paypal Holdings Inc.
