PayPal Holdings Inc (NASDAQ: PYPL) has been nothing short of brutal to its shareholders this year, but Karen Firestone says it’s come down enough to consider buying the stock here.
Firestone’s remarks on CNBC’s ‘Halftime Report’
The Chairman and CEO of Aureus Asset Management has been building a position in the fintech in recent days. Explaining why this afternoon on CNBC’s “Halftime Report”, she said:
We can’t pick the bottom, but we know some of these stocks are down a tremendous amount; we’re talking 45% – 75%. And there’s no reason that when we look forward a year or two, we won’t see much higher stock prices.
A few of the other beaten down names she bought over the past week include Autodesk Inc and Twilio Inc (NYSE: TWLO).
Karen Firestone’s outlook on the broader market
Karen Firestone is also convinced that there isn’t much of a downside left in the S&P 500 index at large and dubs now as a reasonable time to consider putting some of the money to use. She noted:
If we take down the earnings number for next year to $235 on the S&P, with a multiple of 15 times, we’re not that far away. It’s 6.5% down from here. So, I’m not suggesting this is the place to buy. But we can be comfortable at a level like this.
The benchmark index made a new low of 3,754 this morning after the CPI print for May came in worse-than-expected on Friday.
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