1 Ridiculously Cheap Value Stock to Buy With $500 Right Now

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Neil Patel, The Motley Fool

Sun, Mar 30, 2025, 7:30 AM 4 min read

Warren Buffett, the legendary superior allocator who has headed up Berkshire Hathaway for decades, helped popularize worth investing. This strategy involves buying companies astatine a discount to their intrinsic worth, with the anticipation that the marketplace volition bid up their shares implicit time.

Even successful today's marketplace environment, successful which valuations are astatine historically precocious levels, determination are inactive opportunities to travel the Oracle of Omaha's palmy concern philosophy. You conscionable person to cognize wherever to look.

Here's 1 insanely inexpensive value stock that investors should see buying with $500 close now.

PayPal's (NASDAQ: PYPL) maturation soared during the pandemic's worst days arsenic integer outgo enactment soared and a larger stock of people's buying took spot online. But the consequent normalization of macro forces and user behaviour has brought the concern backmost down to Earth. Its slower maturation has near investors little enthusiastic. PayPal's stock terms is presently 77% beneath the grounds precocious it touched successful July 2021.

A caller CEO, Alex Chriss, was brought aboard successful September 2023 to orchestrate a turnaround. He didn't discarded clip making changes. Some notable merchandise and strategical updates person been introduced pursuing Chriss' arrival. Fastlane (one-click checkout), CashPass (cash-back rewards), and Smart Receipts (AI-powered merchant recommendations) are immoderate examples that amended consumers' buying experience.

PayPal is besides focused connected its different cardinal lawsuit group: merchants. Last month, the concern revealed PayPal Open, a level for merchants of each sizes that not lone facilitates payments, but allows these customers to entree value-added services to beforehand growth.

In addition, PayPal is flexing its pricing power, adopting what's called a price-to-value strategy. The extremity is to stress profitability implicit maturation portion being capable to marque wealth based connected the worth it provides customers. "This is simply a caller PayPal," Chriss said during its capitalist time presumption past month. "We are transforming from a payments institution into a commerce platform."

These innovations each dependable good -- and they're precisely the kinds of moves 1 would privation to spot from a caller enactment squad that's trying to close the ship. At the extremity of the day, though, investors should attraction astir however these changes volition interaction PayPal's fiscal show implicit time.

On that front, the absorption squad provided different crushed to beryllium upbeat. By boosting transaction borderline dollars, controlling operating costs, and buying backmost shares, the overarching extremity implicit the agelong word is to assistance non-GAAP net per stock maturation to astatine slightest 20% per year.