I Called the Intel Stock Turnaround, Now I'm Calling This

Guys, this stock has been absolutely beaten down. And when I run it through the stock analyzer, the numbers tell me that it could easily triple from here. I want to show you exactly what I'm seeing because I think this is one of the most undervalued stocks in the market right now. Now, PayPal, it is down over 80% from its all-time high. But since then, the business has gotten better. It still processes nearly half a trillion dollars in payments every single quarter. It has 440 million active accounts and it just got a brand new CEO who could be taking the company in a very different direction. A very famous super investor has recently announced that he's buying the stock. This stock could have the potential to 3x from current prices. And today I'm going to show you exactly why. And then we're going to run the numbers to find out if the math backs it up. But before we get into the bull and bear cases behind PayPal, I want to share something personal about how I think about this stock because I think context does matter here, guys. We've all seen Intel on an absolute tear lately. Now, if you're new to the channel, what you don't remember is when I was buying Intel as it was falling and falling and falling and everyone thought I was crazy. I shouldn't say everyone, a lot of people did. Intel was a mess. It is a stock that's been destroyed. The narrative was terrible. And I kept saying at this price I think you're adequately being compensated for the risk. Remember investing isn't about saying am I going to be right or not. The question is what are the chances of being right and am I being paid properly for that? Is the stock cheap enough where if I'm right the juice is worth the squeeze. My thesis is I want to own 30 or 40 companies that overall I think are properly priced. I don't know which one's going to do well individually or not, but I do believe that if I buy 30 or 40 really good companies at really good values, I'm gonna do well. Now, Intel since then in the last year is up like 6x. The funny part is I do not believe it's worth its current price today. But now all of a sudden, everyone's sentiment has shifted on Intel because the stock price is up. The same thing happened with PayPal for a while. It got to 50, went up to over a 100, and now it's back to 40. The sentiment around PayPal feels like that to me right now. That being said, PayPal is actually in a way better position than Intel was when Intel was at 17 or $20 a share. Here's why. PayPal's core business has not broken. Their cash flow is up. Their revenue is up. Their profit is up. They still process an enormous amount of money every single day. They own Venmo, one of the most widely used financial apps in the United States. So right now they have a new CEO, a completely reset valuation, and several new growth initiatives that the market is not quite yet giving them credit for. The ingredients for a multibagger are all sitting right here. Whether the price is right today, that's what I'm going to walk you through. Now guys, I want to remind you that this title is made just to get your attention. Do I really believe I called Intel? No. Do I believe I found a an investment opportunity where the upside was far better than the downside? Yes. But did I think it was going to go up 600 700% in one year? Absolutely not. Never have, never will. But I want to sit here and show you guys the story behind it. Because as Intel was falling, the the reports on me and my comment on Intel was, "He's an idiot. He doesn't get it." I'm like, "Maybe I am an idiot. Maybe I'm going to be wrong. I have no idea." But now that the stock is up so much, how many people are messaging me saying, "Paul, what about Intel? You were I'm like I wasn't right about Intel. I still think Intel is not a it's still in mid turnaround." But this company we're talking about today is turning around with a lot of profit and growing revenue that's a lot different than Intel. So this one's sitting a little bit better than Intel is. But I love this title. And at first when my team pitched me this title, I was they thought I was going to be against it. I loved it because it teaches the right lesson. Do not take these titles seriously from us. We're here to teach a deeper story and process within the video. Let's take a look at what investors are saying about PayPal's potential. Bull case number one, the buybacks are extraordinary. PayPal has been purchasing its own shares at an aggressive pace. Guys, that matters when the stock is cheap. In the first quarter of 2026 alone, they bought back 1.5 billion of their own shares. I want to show you guys how impressive that is. The company's only worth 41 billion bucks. So, that's 4% of their shares outstanding they're buying back in one quarter. And over the last 12 months, they've returned over $6 billion to shareholders through buybacks alone, repurchasing approximately a hundred million shares. That's 15% of their entire market cap in one year. Think about what that means. If a company has 10 shares outstanding, you own one, you own 10% of the business. If they bought back 15% of their business, they went from 10 shares to 8 and a half shares. You still own one, but now instead of 10% of the business, you now own 13% of the business. Your ownership is going up. Your your share of the earnings and profit is going up. That means if they keep doing this and the stock stays down, as you hold it, your ownership is going to keep going up and you're going to keep accumulating more and more of the free cash flow and the profit the company's going to get. And guys, I remind you the stock is down over 80% from its highs. That's what's exciting about it. Bull case number two, new leadership and a real turnaround story. PayPal just brought in Enrique Lores as CEO. He came from HP where he ran a successful split up of HPQ and HPE. He's known for cutting costs, sharpening focus, and driving execution. And in his very first statement as PayPal CEO, he said something that people thought was very important. He talked about taking deliberate steps to sharpen the strategy, simplify the organization, and improve the growth trajectory. The previous CEO, Alex Chris, stepped down, and the exit costs are already being worked through. Many hope they'll follow the path of many other companies and cut their headcount to decrease costs. For reference, competitors like Square now have less than 10,000 employees. PayPal has over 20,000. Bullcase number three, new growth initiatives that the market is not pricing in. PayPal is building an advertising business inside their platform. Think about it like this. PayPal knows what you bought, where you bought it, and how much you paid. That purchase data is extraordinarily valuable to advertisers. PayPal is starting to monetize that data by helping merchants show targeted ads to relevant buyers. There are reports of PayPal exploring a partnership with OpenAI and acquisition conversations with companies that including Stripe and Michael Bur, the investor who predicted the 2008 financial crisis, recently took a meaningful position in PayPal. When someone with his track record of individual stock picks makes this kind of bet, it's worth paying attention to. Now, that's all good information, but there are bare cases for PayPal. Bare case number one, growth has slowed significantly. PayPal's first quarter revenue grew only 7%. But it's still growing. That sounds solid until people compare it to where this business was growing just a few years ago at over 20 or 25%. The pandemic pulled forward enormous amounts of digital payment adoption and PayPal's numbers looked incredible during those years. Now growth has normalized and the market has punished the stock hard for it. The new CEO is being cautious. He is reiterating guidance of low singledigit decline to slightly positive EPS growth for the full year. That does not excite people. Rare case number two, competition is extremely fierce and getting fiercer. Apple Pay, Google Pay, Stripe, Square, Shopify payments, and now even the banks themselves are building better digital payment tools. The checkout button wars are real and in some demographics especially younger users. Apple Pay and Google Pay are becoming the default. PayPal is not losing dramatically. They still hold the dominant market share, but it's fighting for every inch of market share in a way it never had two years ago. Maintaining pricing power and transaction volume in that environment is not guaranteed. Bare case number three, margin pressure and EPS declining. Here's what the first quarter numbers showed. EPS was flat at a$134 and guidance for next quarter projects EPS declining single digits. PayPal is going through a real transition. The new CEO is cutting costs and reshaping the business, but earnings are under pressure in the near term. Investors who expected a fast turnaround may get impatient before the new growth drivers kick in. Impatient investors selling creates volatility, and volatility can push prices even lower before the story becomes clear. Now, let's do what we always do and run the actual numbers through a consistent tested process because that's the only honest way to find out if it's actually the opportunity many believe it could be. Now, let me give you a few data points from the first quarter earnings report, which I covered on our Everything Money Plus channel to set the stage. Revenue was 8.4 billion, up 7%. They have 13 billion in cash and investments on the balance sheet, and they bought back 1.5 billion in stock in a single quarter. The adjusted free cash flow, which strips out timing differences from their buy now pay later bid business, was $1.7 billion in the first quarter alone. Annualized, that's nearly $7 billion in free cash flow from a company with a market cap that is only $40 billion. That is six times free cash flow. That's the number I keep coming back to. It tells you the business is still generating real money. So, let's see what the stock is actually worth. So, guys, here are the metrics. Like I said, that $7 billion is way better than their free cash flow of 5.5 billion, which is higher than their 5-year average. They're selling for 7 12 times last year's free cash flow. They have good returns on capital, getting better, 12%, growing to 15%. This is telling me the company does a good job of handling their money. They're good allocators of capital. Profit margin 14% a year for the last 10 years, 13.5 for the last five, 15% last year. They're selling for eight times earnings and um they have a small little dividend here of 130 million bucks. No idea why, but it pays.3%. Our community members have this as a buy rating. Let's go to the eight pillars here. Now, cash flow is down, net income's down over the last 5 years. Other than that, everything is a check. They've bought back 21 and a half% of their shares over the last 5 years. Guys, the reason this is incredible is I'm going to go through the math here real quick for you. The company currently has 900 million shares outstanding. 900 million. I'm going to do a lot of math here, but I'm going to keep you focused here. Last year, the company created $5.5 billion in free cash flow divided by 900 million is roughly $6 per share in free cash flow. Okay, fair enough. Let's say that the company you decide is worth in a normalized market$18 times free cash flow. You're currently saying it's worth $108 per share. Great. Now, let's say they never increase their free cash flow from here. And every year they buy back, they use all their cash to buy back shares, 5 a.5 billion. In four years, they have bought back half of their shares. So, they're still going to have a there. They're now going to have a company that has $450 million shares outstanding, and they still make that $5.5 billion in free cash flow. Instead of $6 per share in free cash flow, they now have $12 per share of free cash flow. What would you pay for that? Again, if it's 18 times, you're looking at 10 time 180 and 36, $216 per share. The free cash flow didn't change. The number of shares did and the price per share will change along with it eventually. That's the idea of buying back cheap shares. That's how it can generate a lot of money for investors even if the stock stays stagnant. But guess what guys, the stock won't stay stagnant if they keep small amounts of increases in their free cash flow and keep buying back shares. So let's go to the analyst estimates here, guys. Even analysts have 587 per share growing to 783 in the next three years. And look at the revenue growth. Not huge. 2 and a half, 4 and a half, 5, 11, and 11 12. And granted, this is four or five years down the road. And they could be wrong. But these guys also have a bias. So to show this kind of optimism with a company that's really that deflated might be a sign that things are looking pretty good for the company. So we have a little bit of story. We have some numbers. Let's sit here and go to our stock analyzer tool and put in our information on our assumptions about the future. So, I did a 10-year analysis, guys. I think you'll see that I'm being reasonably conservative. 2, four, 6% revenue growth for the next 10 years. Profit margin and free cash flow. I'm focusing on free cash flow because it's higher. 14, 16, and 18. What PE would I sign of this company 10 years from now? Guys, I went really conservative. I did 13, 17, and 21. And then finally, my 9% no margin of safety. What is the intrinsic value of this business? That's what I'm doing there with my 9% return. So, you can see I feel I've made pretty reasonable assumptions on PayPal. And this is something that you guys can easily learn to do with our stock analyzer tool to save you countless hours on research. And this is why you need this. What you just watched me do took about 3 minutes. and it told me more about PayPal as an investment than most people ever know before they buy it. Most people would have just looked at the price and the story, read a headline or two, and made a decision. That's how you buy a stock and then feel sick to your stomach when it drops because you never really understood what it was worth in the first place. The stock analyzer tool changes that completely. You put in your smart assumptions about a company's growth and cash flow, exactly what you just watched me do right here, and it shows you the price where you actually get the return that you are looking for. This is a number that means something to you because you made your assumptions to determine it. People who use this are going to greatly decrease their emotional decisions. They stop buying based on hype and hoping for the best. They know what they own. They know what they paid, and they know what it's worth. That's what it feels like to sleep well at night, no matter what the market is doing. And here's the thing, you just saw how simple this is. If I can do it live right here in a few minutes, you can do it much faster because I have to sit here and explain things. You don't need a finance degree, guys. I don't even have a finance degree. You don't need to be a math person. You just need the right tool. So, here's what I want you to do right now. I want you to start the 7-day trial for just seven bucks. Click the link below. Get the full access today. run whatever stock you've been thinking about buying. See what the numbers actually tell you before you spend a single dollar on it. So, here's what my results on PayPal look like based on my assumptions. The stock's currently at $45 a share. I have a low price of 65, high price of 140 to 160, middle price of 95 to 104. And guys, I still think I was being conservative. What this means is this stock could easily triple from here based on my conservative assumptions. Now, here's what I want to show you that's really, really important. Something I've really done in the last few years that I wish I'd started 25 years ago. Because in knowing a stock could be undervalued is one thing, but knowing how to position yourself to take advantage of that in a disciplined way, that's where the real skill comes in. I use a strategy called selling cash secured puts on stocks that I stocks that I want. Here's how it works in plain English. I am selling someone the right to have me buy a stock that I want at a lower price. So, what this means is the stock's currently at $45 a share. I own shares. Don't ever buy a company because I or somebody else on the internet has it. But let's say I want to buy more shares. Now, guys, the stock is already cheap at 45. So, let's say I'm like, you know what? I want to I want to buy it cheaper, but I'm not trying to get it really cheap. Let's say I want to buy it at $43 a share. somebody's going to pay me 80 cents per share to buy PayPal at $43 per share. And I keep the 80 cents no matter what happens. That's basically a 21% return on my cash if I do it over and over and over again every single month for a year and don't get the shares. So, here's what could happen. The stock falls below 45 $43 a share. I keep my 80s and I buy the stock at 43 bucks. So, I essentially paid $42.20, which is the $43 minus my premium. If the stock on June 12th is above $43 a share, I don't get the shares, but I still keep my 80 cents. That's what's wonderful about this. I either get the stock at the price I wanted, or I get to just keep the premium as free money, guys. This is like having a coupon on the stock where it says to you literally like you go to the store and say, "Hey, you want to buy this shirt on this date? If it's selling below this price, you can buy it right there." That's what's incredible. Except now the coupon company is sending you money along the way. So guys, if that sounds interesting to you, even if it sounds a little confusing, but kind of intrigued, don't worry. It was very confusing for me to start. What I want you to remember is I'm buying a stock that I want at a lower price and being paid to do that. But guys, luckily for you, I created an absolutely free options PDF to teach you more about the strategy and also our covered call strategy. Click the link below in the description or in the first pin comment and absolutely free we will send you that PDF to your email in a matter of minutes. Now, if you want to see my seven picks that I made that I think will beat the actual Magnificent 7 over the next decade to come and how they've performed so far, click the video on your screen to check it out. You'll be pretty surprised on how it's going over the first year. Thank you for your time.