After Solid Q1 Results, Is Now the Time to Buy PayPal Stock?
(NASDAQ: PYPL) investors have had a tough go the past five years, with the stock down more than 40% over that stretch (including a roughly 80% pullback from its highs). However, there are signs a turnaround is in the works.
The payments powerhouse reported good results across several important metrics in its first-quarter earnings report. More important, it continues to set itself up for future success by reinvesting back into the business to help drive growth.
PayPal's first-quarter results were very solid, with revenue rising 9% (or 10% if you exclude foreign currency effects) to $7.7 billion. Adjusted earnings per share (EPS) rose 27% to $1.08. You might have expected a different number if you'd been following the company's guidance, but the company is now including the effects of stock-based compensation. The change is subtle, but I applaud it. Many companies take out this non-cash expense when reporting adjusted EPS, but stock comp is a real expense that increases overall share count and dilutes shareholders, so PayPal is actually being more transparent about its profitability.
Source Fool.com
Paypal Holdings Inc Stock
The stock is one of the favorites of our community with 53 Buy predictions and 2 Sell predictions.
As a result the target price of 78 € shows a positive potential of 29.12% compared to the current price of 60.41 € for Paypal Holdings Inc.
