PayPal Transitioning to a Broader Commerce Platform with Consistent Growth

24 days ago

"Now, that company is PayPal. And guys, it's a stock I own. But remember, never buy a stock because anybody in the world, I don't care if it's a YouTuber or Warren Buffett, say to buy it. Your job, our job here is to teach you a process and your job is to apply the things you understand to companies you can understand. Now, PayPal is transitioning from a pure payments processor into a broader commerce and financial services platform, driving consistent, albeit not very exciting, revenue growth with digital payments, with Venmo, and with buy now pay later services contributing meaningfully to its volume and earnings. In addition, management has outlined a multi-year plan targeting accelerating transaction margins and earnings per share growth through 2027. In recent weeks, we've seen PayPal announce a strategic partnership with Open AI along with announcing its application for a US banking charter as they look to strengthen their reach and deepen their integration."

The speaker provides a detailed commentary on PayPal, highlighting its transition from a pure payments processor to a broader commerce and financial services platform. He emphasizes PayPal's steady revenue growth backed by digital payments, Venmo, and buy now pay later services, alongside a multi-year plan to accelerate transaction margins and EPS through 2027. Additionally, recent strategic moves, such as a partnership with Open AI and an application for a US banking charter, further bolster its long-term value proposition.

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