Introduction:
Good morning, today'I am writing about a dividend stock which may represent a phenomenal opportunity—a massive company that might just be the bargain of the century! ...
Or a big gamble...
The company? PayPal.
🚀 The Big Idea: The Stock Is ON SALE!
Now, you might be looking at PayPal and thinking, "Wait a minute! The stock price has been crushed!" And you'd be right! Over the last five years, this giant of online payments has seen its stock price drop by a shocking 60% to 70%!
But here’s the secret every smart investor knows: sometimes, a steep drop means a fantastic sale! Our investor, Daniel, sees this huge drop and believes this giant is selling for far less than it’s truly worth. It’s like finding a treasure chest marked with a ridiculously low price tag!
🛠️ The Turnaround: A New Leader and a Bold New Plan!
What's sparking this excitement? Change!
For a while, PayPal felt a little lost. Daniel felt the old management was simply wasting money on confusing purchases. But now, we have a new CEO!
- This new leader isn't trying to spend wildly; instead, he's taking a deep breath and focusing on making the company's core business strong and competitive again. He’s taking a ship that was lost at sea and pointing it back toward the harbor! 🚢
- Plus, PayPal is looking to the future! They're working with Artificial Intelligence (AI) to build the PayPal wallet right into those smart AI shopping assistants. Think about that: your AI helper could pay for things instantly with PayPal. That is huge potential!
💰 The Engine: Unstoppable Cash Flow
Despite the stock price falling, the actual business of PayPal is surprisingly healthy! They have parts that are growing like crazy:
- Buy Now, Pay Later (BNPL): Customers absolutely adore the flexibility of paying for things over time. This part of the business is a genuine growth engine!
- Venmo: Everyone's favorite app for splitting checks and sending cash is still booming, adding users and revenue.
And the best part? PayPal is a true "Cash Cow!" 🐄 It brings in billions of dollars every year in free cash flow. This is money left over after all the bills are paid. It's pure, beautiful profit!
🥊 The Challenge: Holding the Line Against Giants
Now, to be a good investor, you must face the facts. Why did the stock drop? Competition!
- PayPal still has over 400 million users, which is massive! But that number has pretty much stopped growing. It's stuck.
- They’re fighting massive rivals every day—companies like Apple Pay and others are taking a bite out of PayPal's market. PayPal isn't easily winning new territory anymore.
📈 The Investment Magic: Why the Bargain Works!
So, how can Daniel be so excited if growth is tough? Because the value of the stock is simply too low!
The magic is in two words: Stock Buybacks!
- PayPal is taking all those billions of dollars in free cash—remember that "Cash Cow?"—and using it to buy back its own stock.
- When a company buys back its stock, the total number of shares left on the market gets smaller. It’s simple math: with fewer pieces of the pie left, the remaining slices (shares) are worth more!
- Because of these buybacks, the company's profit per share is actually soaring—it's growing at an amazing 12%!
The conclusion is clear: even if PayPal only grows a little, the fact that it's buying back stock when the price is so cheap creates a fantastic opportunity. Daniel loves this kind of setup because the downside is small, but the upside could be huge! It’s a low-risk, potentially high-reward scenario!
✍️ About the Author & The INLEO Community
🙋♂️ Author: Shortsegments
This post was written by @Shortsegments, an author who has been covering cryptocurrency, blockchain technology, decentralized finance, Bitcoin, Ethereum, and digital ledgers for seven years.
- Read More: Find all of his articles on his blog: Link to his blog.
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Thank you for reading my post!
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Where to buy them?
Your broker like Charles Schwab or Robinhood
See juicy offer😂 This is a good investment to make. But can I be able to buy?
Good day,Sir. Thank you for sharing this opportunity.
Your broker like Charles Schwab or Robinhood
#hive #posh
Thanks
Most welcome.
I agree, PayPal still has a strong base, and with the new leadership and buybacks, it might turn things around. Feels like one of those stocks that could quietly grow over time.
Do you know the exact place to get them
Your broker like Charles Schwab or Robinhood
The stock drop might actually be a good chance to invest, especially with the new CEO’s plans. I think the company still has strong potential if they keep improving and focusing on growth.