About this video

• Video Title: Don't Be FOOLED | PayPal Earnings Preview
• Channel: Stealth Wealth Investing
• Speakers: Not specified in the transcript
• Duration: 00:08:52

Overview

This video provides a preview of PayPal's upcoming earnings call, focusing on key metrics investors should watch, potential concerns, and the speaker's personal investment strategy for PayPal stock. The speaker outlines three critical areas to examine during the earnings report: share buybacks, the impact of tariffs, and Earnings Per Share (EPS) guidance. A significant concern is highlighted regarding Wall Street's continued focus on customer growth over profitability, which could misalign with PayPal's current strategic shift.

Key takeaways

• Share Buybacks: The speaker expects PayPal's management to continue share buybacks, especially given the stock's undervalued price, which should positively impact future EPS.
• Tariff Impact: Investors should monitor if PayPal is experiencing any trickle-down effects from tariffs and if their new initiatives can offset potential negative impacts.
• EPS Guidance: The trajectory of EPS guidance is crucial, indicating whether PayPal's shift towards profitability is progressing as planned or facing setbacks.
• Wall Street's Focus: A major concern is that Wall Street might still prioritize customer growth over profitability, despite PayPal's strategic pivot, potentially leading to a disconnect.
• Personal Investment Strategy: The speaker already holds a full position in PayPal and plans to add only minimally, preferring to allocate capital to other stocks offering better opportunities at this time.