PayPal's 16X Sales Will Bottom Out at 16X GAAP Earnings, Says Analysts.

PayPal's Q1-2023 earnings beat expectations with revenue growth and margin expansion, but saw a small drop in total active accounts. Despite strong earnings estimates for 2024 and 2025, the stock's valuation remains demanding at 18X GAAP earnings. The author suggests waiting for a minimum of 16X GAAP earnings as a buy point, and recommends selling cash secured puts at $60 or lower strikes as a hold strategy. A longer-term buying opportunity may present itself in late 2023.