Analyst Note| Brett Horn, CFA |
As expected, PayPal had a good first quarter. The company continued its streak of strong top-line growth and saw some margin improvement. While PayPal is close to ideally situated for the current moment and we appreciate the narrow-moat franchise’s strengths, we continue to think the company may face a more competitive environment over the long run. Given the dramatic rise of the stock since the start of the pandemic, we think the market is too focused on the near-term tailwinds. We will maintain our $139 per share fair value estimate.