Slowly but surely we are getting all of the weak sisters flushed out of undervalued great companies – while they chase into overpriced momentum vehicles that are set up for a fall.
Paypal has gone from trading at 12x sales just 2 years ago to 2x sales today. It has fallen from an unrealistic ~87x earnings in 2021 to a bargain basement ~10x earnings today. Paypal will generate a record $5B of free cashflow in 2023 alone. To put that in perspective, they could take the entire company private in a decade or less!Effective as of September 27th, Alex Chriss assumed the roles of President and CEO, succeeding Dan Schulman, who will remain on the board until May of 2024.
To put this “disaster” in context, revenues are down 2% . The stock on the other hand is down 85% !Of note, Logitech’s stock was down ~82% from its 2007 peak when he took over in 2013.But when you do, just ask yourself, “who is buying from me at these levels?”