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Actionable news in PYPL: PAYPAL HOLDINGS Inc COMMON STOCK,

PayPal: Improving Leverage Outweighs Industry Threats

PayPal is making strides to improve leverage after the split from eBay.

Apple Pay, along with other payment options, are viable threats that are likely to cause volatility in the stock.

The stock trades at an attractive valuation compared to the potential for digital payment growth that includes emergent mobile and P2P.

The interesting part of the PayPal (NASDAQ:PYPL) story is the digital payments provider has a business similar in size to MasterCard (NYSE:MA). The payments network provider is generally seen as a bigger company due to the market valuation of nearly $110 billion, but both companies are on pace to soon pass an annual revenue run rate of $10 billion.

My previous research recommended starting a position in PayPal during the late September dip. The question is whether investors should continue loading up with the stock after a rally over $35 and after reporting mixed Q3 results.

Operating Expense Leverage

The split from eBay (NASDAQ:EBAY) provides the opportunity for PayPal to grow the business and fine tune operating expenses to improve margins that wasn't always a focus under eBay. In the last quarter, PayPal...


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