![]() ![]() free cash flow that this company is kicking off. "Look at PayPal and look at the incredible amount of. Tatro also noted the valuations do not look as overstretched as Sanchez argued. It just rolled out basically a debit card that the generation that is using that is using that much, much more than a traditional debit or credit card," Tatro said during the same "Trading Nation" segment. "There's no question the shift toward payment methodology is going toward these new methods, these new companies. Quint Tatro, president of Joule Financial, is more bullish on the tailwinds driving Square and PayPal higher, though. You need transactions in order to support all of these plays, and so I would argue that psychologically you can tell yourself that but I don't know that it's going to play out over a period in your portfolio," said Sanchez. "They're both driven by the same thing - consumption. However, Sanchez said that reasoning is not justified. Square and PayPal likely trade at higher valuations compared with Visa or Amex given their position at the intersection of finance and technology. Both have a higher multiple than Visa at 34 times and American Express at 17 times. Square trades at 167 times forward earnings and PayPal at 46 times. "The reality is that the digital plays are extremely overvalued." "These are stocks that have actually expanded from momentum and multiple expansion, but the underlying decline in spending is actually hitting all of these companies pretty squarely in the gut," Sanchez told CNBC's " Trading Nation" on Thursday. Personal Loans for 670 Credit Score or LowerÄon't take PayPal's and Square's outperformance as evidence they can continue to outperform, though, warned Gina Sanchez, founder and CEO of Chantico Global and chief market strategist for Lido Advisors. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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