PayPal Stock Dropped 9% After Earnings. Is it a Red Flag, or a Buying Opportunity?

The company hopes some newer initiatives lift its growth rate.Shares of financial technology (fintech) company PayPal (PYPL -2.38%) dropped 9% on July 29 after it reported second-quarter financial results. I believe it was a clear overreaction.Investors seemed to head for the exits after looking at PayPal's second-quarter free cash flow. In Q2, the company generated free cash flow of $692 million, which was down a whopping 49% year over year. That certainly looks troubling. In reality, PayPal had been expec ...