$10,000 Invested in PayPal 5 Years Ago Is Worth About $2,590 Today. The Company Has Bought Back 8.6% of Its Shares Since January.

A $10,000 investment in PayPal five years ago would be worth around $2,590 today, according to the latest data. The company has purchased back 8.6% of its shares since January. Despite the negative performance of PayPal stock, the business remains profitable, with an adjusted operating margin of 18.8% in the most recent quarter and $4.1 billion in free cash flow for the first nine months of the year.

PayPal has reduced its diluted outstanding share count by 8.6% and 21.9% over the past three years through buybacks, indicating management's belief that the stock is undervalued. The company's forward P/E ratio of 9.7 suggests it may be undervalued. However, there are concerns about the growth slowdown, with net revenue increasing only 2% in the latest quarter and payment volume growth slowing to 1%.

While the buyback pace is impressive, it shouldn't be the sole factor in investing in PayPal, which should be approached with caution as a potentially risky stock until growth improves.