THIS NEW STOCK IS EASY MONEY

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Well folks you wouldn’t believe it jeremy went ahead and actually bought a large cap stock here in the past 24 hours which is a miracle because it has been uh quite a while since i bought uh what’s called a mega cap a large cap stock but here in the past 24 hours is a stock that i feel is easy money over the coming years and i don’t throw around that expression

Very often i like a lot of stocks i buy a lot of stocks but to be in the category of an easy money stock those come very few and far between on this channel and this particular stock has been devastated and um you know in in this sort of market right now i don’t think it’s the most popular thing to to talk about you know buying the dip and those sorts of things

Right now we’re a very fear driven market we’re a very fear driven community on youtube right now and based upon pricing action in this particular stock today and other stocks it’s very fear driven right now that’s what’s driving this market you have um you know big fund managers really pushing their weight around in this market right now and selling off the some

Of these companies that have great futures and have great business models uh but you know they’re just being sold off left and right so yeah i’ve i’ve bought this one very very heavily in the past 24 hours let’s call it that 70 000 plus i just put in the stock like literally in the past 24 hours and so um there has to be a lot that i’m excited for this stock over

The coming years so we’re going to go in depth on the stock i’m not just going to tell you what stock it is we’re going to go into the numbers we’re going to go to the balance sheet we’re going to go behind the numbers like why did this stock fall so much um why has it fallen so much you know this stock is down significantly massively and once again this is not some

Like penny stock or something like that or some small cap this is a huge corporation so we’re going to dive into all that and uh why i think the stock is easy money all those sorts of things hope you guys enjoy it as always and uh you know in terms of the stocks i’ve been buying recently i can understand like you know people not maybe being that into those sorts of

Stocks right like tattooed chef oatly honest companies like that i never call those companies easy money although i’m the i think i’m going to make a lot of money in tattooed chef and oakley and honest over the coming years i never would call those companies easy money they’re they’re uh you know earlier day companies they uh have a lot to prove they have to get

Their business models to profitability so you can’t go around calling stocks like that easy money even if i think i’m going to make a lot of money right and so that’s why i don’t use that term when it comes to these particular stocks an easy money stock to me this is very important okay an easy money stock to me has five core factors one they have to be a profit

Beast and a cash flow machine this company i’m sharing with you here today they meet that criteria they are a profit piece they are cash flow machine okay number two i’ve got to feel like there’s less than a one percent probability i lose money on the stock over the next three years so if we fast forward three years in the future i have to be like 99 sure that i’m

Gonna make uh money and make a significant amount of money if there’s even a one percent probability or two percent probability or five percent then i’m like oh man you know maybe this goes wrong i can’t buy i can’t i can’t call it an easy money stock i can buy this talk but i won’t call it an easy money stock it’s going to be ridiculously low probability i lose

Money over the next three years it’s got to have a forward p on of basically under 30 on the stock to be an easy money stock they’ve got to have a business model that i believe am fully confident the business model is going to be much more relevant in three years from now than it is today and lastly to be an easy money stock you ought to have a great balance sheet

Have way more in cash and investments than you do debts which obviously uh help de-risk the business model even more okay now if you have all five of those then i can put you in that rare category of an easy money stock and in terms of easy money stocks in the channel in the past there’s been three i’ve mentioned over the past few years apple uh you know look at

When i was calling that stock in easy money stock versus where that that you know market cap and that stock’s gone now it’s it’s uh probably 3x the value uh facebook when i was buying that one it was like 140 150 i think i got shares in the 130s um look at that stock even today even after the stock completely crashed it’s still up massively from when i was calling

Easy money stock in berkshire hathaway was another one that i called an easy money stock in this channel and look at where that stock price has gone literally since i called it an easy money stock so i don’t usually put that term out there very often so when i do it’s kind of a big deal okay and this one is the next easy money stock over the coming years and it

Is paypal holdings p y a p l this is the new easy money stock this one’s been devastated it down 24 plus percent here today the volume was incredible i took this before the market even close it’s like 50 55 minutes before the market closed look at the volume okay 116 million shares traded hands when the average volume is 15 16 million like that’s incredible this

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Stock has fallen from 310 to 132. i mean it’s moving like it’s a penny stock or something like that right market cap 155 billion now uh when your target’s 254 from analysts on the stock they’ll probably bring that number down like 190 probably or 200 that really doesn’t even matter in the end like you know those analysts predictions are always wrong they’re way

Too low way too high most of the time okay i knew to buy the stock here today when i heard kevin o’leary on shark tank uh basically they had him on cnbc and he says i’m selling it today i’m dumping it yeah they’re bad you know or something like that and i was like okay kevin kevin’s out i’m in it okay kevin o’leary that is kevin o’leary’s out i’m getting in but uh

Yeah so let’s get into why i think this is going to be an easy money stock over the next few years and you know how much i’m planning to put into this stock over the next uh let’s say coming weeks or coming months and when it comes to this one so first off in regards to paypal very important this isn’t just a paypal app you’re buying essentially right or the paypal

Service you’re also getting venmo so paypal and venmo are usually the number two and number three most popular uh finance related apps in all the united states of america and they’re huge internationally as well right now because it’s getting in taxis and turbo tax jumped up there in the number two okay but most of the time they’re not their number they’re number

Two and number three and cash app usually is number one there which is owned by square by the way which square is actually pretty interesting as well i think square’s a more dangerous version of paypal with maybe a little more upside um and also more downside paypal it feels like a safer version and so you’re getting a more i shouldn’t say diversified business

Model where it’s not just one app you’re counting on it’s two big massive services that could continue to bring new folks to use them right and those folks use them usually more and more often than they ever have before so that’s very very important to remember okay now in terms of why this stock is down so much here today all right shares a paypal plunge 25 on

Wednesday a day you know basically after they provide a weak guidance paypal reported mixed results for the fourth quarter earnings per share came in at a dollar eleven x items which missed the dollar twelve which was expected by analysts it beat on revenue estimates reported six point nine two billion versus six point eight billion but that’s not a big beat you

Know wall street’s going to look at that and almost consider it a miss because they barely beat right it also said it expects first quarter non-gaap earnings per share of 87 cents while analysts had been projecting a dollar 16. it also anticipated that revenue would grow about 15 to 17 percent for full year 22 on a spot foreign currency neutral basis analysts

Had projected almost 18 revenue growth for this company in 22. now when you look at this you’re like okay so they’re they’re guiding for the next quarter or eps under uh revenue growth midpoint 16 versus analysts were at 18 right um they they slightly missed an eps by one cent they slightly beat on revenue okay so the stock was 300 plus and it sold off another 24

Today yeah a little bit of an overreaction i mean you would have thought literally it was the end of the world for this company based upon their earnings release and it wasn’t you know facebook earnings on the other hand that was that was a disaster okay i would not call these paypal numbers a disaster by any stretch of the imagination are they exciting no it’s

Never exciting when you’re going to grow potentially sixteen percent and unless we’re expecting you to grow about 18 that’s not exciting right the the the beat on on revenue for this past quarter was a very very slight beat it’s not exciting but at the same time the stock has been devastated through the floor it’s much of an overreaction this was not a disaster

Earnings by any stretch of imagination right and look at the move for the stock rate it’s down 60 percent plus from its 52 week high it’s down 42 percent in the past three months the past three months i mean you know it’s been treated this stock’s treated like it’s a penny stock you know it’s in it’s incredible one year down almost 47 percent and like i said down

60 or so from 52 week highs nothing short of extraordinary the way this stock has been just devastated and beaten down and i would call it a massive massive overreaction in this one right market cap today is trading around 155 billion dollars right so i had to change these numbers because yahoo finance always lags big time so the forward pe right now for paypal

Is anywhere from a 22 to a 27 i would put the midpoint at probably about 24 500 right now somewhere around there right 24.5 ford p for paypal uh yeah that’s um you know ridiculously undervalued i don’t think paper house necessarily the greatest deal in the world at a 4p of 60 or 70. that’s i i wouldn’t be buying the stock if that’s the situation right and that’s

Why i would have never bought the stock in the past but my gosh if when we’re talking about a 24 or 25 forward p for this stock uh yeah for paypal you know you’ve got paypal and venmo to the biggest financial services in the entire world that just continue to get bigger and bigger and bigger and are just gonna continue to get bigger yeah i’m not gonna be able to

Sit there on my hands and be like oh no i don’t want a piece of paper like i’m going to jump in and i’m going to add shares aggressively and very fast look at this fiscal year 22 is for guidance expect tpv okay total payment volume to reach 1.5 trillion dollars in revenue to surpass 29 billion dollars tpv expected to grow 19 to 22 at current spot rates and 21 to

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23 percent on an fxn basis revenue expected to grow 15 to 17 percent essentially excluding ebay revenue expected to grow 19 to 21 so essentially you know paypal and ebay have broken up over the past few years and that’s hurt paypal’s numbers in the short term now from what we’re hearing from the executives all that goes away starting in 3q so like two quarters

From now essentially and so this whole kind of um you know dark cloud around paypal because the the ebay break up there and how much has hurt the business and things like that that all goes away and they’re still putting up these incredible numbers with these incredible expectations despite the whole ebay situation right so which means their underlying fundamentals

Of business are incredible right now gap eps expected to be in the range of 2.97 to three dollars and fifteen cents non-gaap bps expect to be in the range of 460 to 475. 15 to 20 million nnas expected to be added to paypal’s platform in a fiscal year 2022. so when i look at their guidance overall here i see a company that’s expecting a lot more new customers uh to

Their platform which i’m expecting i’m expecting a company that’s expecting very nice revenue growth 15 to 17 percent i’m seeing a company that’s probably sandbagging eps a little bit in my personal opinion um but expect to have you know very solid numbers there and uh total payment volume is expected to continue to increase rapidly so what i see here is a company

That’s just to be quite frank a beast this is a beast of a company okay uh as far as fiscal year 21 revenue increased 18 and if you took out the ebay situation the growth would have been 29 for the year for this company okay so i’m looking at a company here that these numbers are incredible like there’s nothing this is no this is this is not a company that’s

In disaster mode if you look at the stock price you would think it’s the end of the world for for paypal essentially like literally if you looked at just what the stock price has done you’d be like oh my gosh this company is a disaster they must have you know revenues going down and you know everything for the business model is devastated and there’s just going

To be nothing like literally that’s what you would think if you looked at the stock price and then you go a little beneath the surface and you start looking at the numbers and it’s like oh yeah this is the one that kevin o’leary sold out of completely today okay yeah i’ll take your shares cat you know kevin o’leary i’m happy to take those shares it’s incredible

Balance sheet i know a lot of my core viewers love the balance sheet as you should balance sheet cash and cash equivalents and investments total 16.3 billion dollars okay debt totaled about nine billion dollars that’s over seven billion dollar uh you know positive number essentially there they could pay off all their debt tomorrow and still have 7 billion plus

Just sitting around in cash and investment so the company’s in a incredible position with their balance sheet and remember it’s a super profitable business model and it just continues you know it’s going to continue to get more profitable in future years so as a company gets more and more profitable right they just continue to be in the situation where the cash

Piles investment piles pile up to the sky if they want to use that to buy out other companies which we’re going to talk about a couple companies that they’re rumors they might be interested in buying out uh you know toward the back half of this year we’ll talk about that but they can use that to buy out other companies they use that to buy back shares they can use

That to pay out dividends if they wanted to which i don’t think they’re going to do because they’re too much of a growth company to do that but um you know nonetheless i expect the balance sheet to continue to get stronger and stronger and stronger and so you know i’m looking at the income statement i’m looking at the balance sheet i’m looking at the cash flows

Like everything is uh extremely impressive and just going to get stronger for this company over the coming years and i see a stock price that’s been absolutely obliterated okay now there’s there’s a couple companies that there are rumors now key with rumors are you know the it could just be nothing there okay but there are some rumors that paypal could potentially

Want to buy out two specific companies in uh toward the back half of this year so one’s the hood robin hood i don’t think it would be a bad move um you know when it comes to robin hood i think they should get bought out by somebody they need a they need a big brother you know at that company they’ve gone through a lot of drama they’ve um you know damaged their brand

To a certain extent and things like that they need somebody overlooking them in my opinion um and somebody that uh to acquire them that’s my personal opinion on robin hood uh so when it comes to robin hood i doubt they would want to sell anytime soon they’re too early into their their uh public days as being a public company you know if their stock continues to go

Down downtrend their numbers continue to be horrible over the next couple quarters you know maybe in the back half of this year 3q4q maybe there is something that happens there i don’t know um we’ll we’ll kind of see what happens with that one okay next one up here that there’s a rumor is uh maybe paypal would be interesting buying something like sofi technologies

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Out so sofi is another one of those stocks that just is having trouble getting his footing right um when it comes to sofi here’s another one i don’t think we would want to sell out right now i think if this stock continues to downtrend into the back half of the year i think there’s a possibility that maybe they’d want to do a deal with paypal or something like

That and they might get some some pressure from some shareholders to go and make a move or something like that so i wouldn’t be against that as as well but those are just rumors you know none of that my bullish thesis on paypal and why i’m starting to buy the stock has nothing to do with if they were to buy out uh you know robinhood or if they were to buy out so

Far in the back half this year if they do great uh if they don’t that’s fine as well but it is definitely a possibility it would boost their growth up and they would likely be able to get those businesses to profitability to profitable levels which would be big and give some kind of big brother guidance there all right now this is a huge deal amazon’s to add venmo

As payment option at checkout this is going to happen at some point in 22 we still know this specific date on when this will will uh you know basically come out and we were talking about this actually on on millennial money last night and i was explaining the guys why this is this is actually a pretty big deal and if you’ve ever ran a business or anything like that

And you’ve you’ve added the paypal option you understand like that can drive a pretty good amount of business and i check out through paypal sometimes as well like i do a mix sometimes i’ll check out through paypal sometimes i’ll check out through credit cards venmo i don’t use as much personally because i’m a little more of a paypal person but nonetheless this is

A huge huge deal and i was explaining the guys i was like imagine if just two percent not even a huge amount just two percent of the people that buy something on amazon use venmo at checkout you know imagine the type of volume that starts to go through venmo when you think about how big amazon is right no let’s imagine it’s four percent let’s imagine a six percent

Let’s imagine it’s eight percent which would still not be a a huge percentage at all that still means nine plus you know uh nine ninety percent plus of people are using just a credit card or debit card to buy something in us much smaller amounts using venmo so i look at this as it’s also genius for branding right if you’re on if you’re on amazon which everybody

Pretty much uses amazon throughout the world or certainly a in developed markets and you see an option for venmo it’s just another thing that you hits you in the back your mind if you never signed up for the service like hey maybe i’ll maybe i’ll check out this venmo and so i look at that as payment volume and branding i love it i think that’s i think that’s great

I don’t think wall street has any sort of expectations around this deal i don’t think um wall street’s even paying attention this to be quite honest and i i don’t i i just say you know don’t underestimate don’t underestimate about a deal where you have the payment option at checkout on amazon don’t underestimate that for even a second right and i know you know

As far as ubereats goes they have it where you can integrate paypal and doordash has paypal and venmo don’t underestimate how many people will use that as a payment option that’s all i’ll say about that and wall street’s here they’re not even you know looking at something like this in my opinion i’m like oh my gosh you got to pay attention to this okay now in terms

Of me and buying more shares of stock so obviously i’m adding very very aggressively my next buy price is 126. my next buy price after that is 121 and um that’s if it goes down to those levels right it might not go down on those levels um you know we’ll see i know tomorrow’s likely going to be a bad day in the nasdaq so maybe it pulls down some more so for me if

It goes down those level levels those are my next buy levels uh under 121 then we’re at 116 and 111 for next buy levels after that once again those are big ifs you know because today was a big capitulation day for their stocks just to be quite honest by the way this one was right around the time the market actually closed out 134 million shares traded hands in the

Usual amounts 15 to 16 million okay so there was a flood out of their stock here today and i was just happy to to be a buyer for the first time ever and get some shares that i feel like are going to be you know much more expensive a few years from now than they are today and i feel like i’m actually taking a very very low risk in this one so yeah that’s why i love

Uh you know buying paypal now that’s why i feel like it’s going to be an easy money stock and we’ll see if it does what the other stocks you know did in the past and and performs great over the next few years um or maybe this one kind of breaks that trend so right now is a great time to learn how to invest in the market on a high level we got a massive valentine’s

Day sale coming it’s the stocks and lovers valentine’s day sale that is going to be coming for the private group financial fortress if you want to get on the waitlist for that deal check out pin comment down there much love and have a great day

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THIS NEW STOCK IS EASY MONEY By Financial Education

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