PayPal - the typical undervalued falling knife that one should avoid. As a long term investor myself, I haven't touched the stock since $60-$80 range and I'm glad to have exited my position long ago. Yes it is an undervalued stock with a reasonable p/e ratio. However, PayPal's earnings have been incredibly unstable, with declining revenue growth and margin pressures being the main reasons behind its drop off. Despite the reported takeover, I still think this could be a value trap until I finally start seeing solid fundamentals in its earnings report and a growth direction set by the company or whoever that eventually buys over.