3 Reasons PayPal Is Betting $5 Billion on Its Own Stock
In early February, (NASDAQ: PYPL) Chief Financial Officer Jamie Miller revealed that the company plans to buy back about $5 billion of its own stock in 2024. With a market cap of only $65 billion, the repurchases would represent nearly 8% of the company's equity value.
This is a huge bet for PayPal. Now trading at a depressed valuation, buying back stock could prove a genius move. But if history is any indication, PayPal could end up rapidly destroying shareholder value.
The company has already spent $15 billion in share repurchases since going public in 2015. Most of those stock buybacks ended up destroying shareholder value given the repurchase prices were much higher than today's valuation.
Source Fool.com
Paypal Holdings Inc Stock
With 69 Buy predictions and 3 Sell predictions Paypal Holdings Inc is one of the favorites of our community.
With a target price of 75 € there is a slightly positive potential of 14.45% for Paypal Holdings Inc compared to the current price of 65.53 €.