PYPL has been hit hard over the past couple years, mostly from slowing growth and competition concerns. But when you look at the fundamentals, it’s still generating strong cash flow and remains a top player in online payments. The valuation is much lower than other fintech names, which makes it interesting if you believe the sector will rebound. Not advice, just sharing what I’m noticing.
Posted by Dry_Structure_6879
17 Comments
It’s a dinosaur and IMO had its heyday.
there is a lot of die hard fans on Paypal.
As a user that barely touch them anymore, I don’t see any inovation or future. They may survive under the cracks but do not see any amazing coming out of them.
I remember to like to do payments using paypal because “they never fail!” credit card or so would fail sometimes. That is no longer true.
When companies fire everyone and move everything including business critical things to low cost countries, some shareholders own big on thoses quarters, and left on time so that dont lose now.
The fees at PayPal are insane. Players like wise are rapidly taking marketshare in their core business
I get the value argument, but what’s the catalyst to make the stock actually turn around? It could easily be “dead money” for another two years. I’m staying on the sidelines until the new CEO proves they can stop the bleeding and find a path to growth again.
I can’t argue with the fundamentals argument but I’m just not confident enough in it’s story line seeing all the new competitors in every day life.
Honest take from someone who used to use them back when I was running a dive service: they were a pain in the ass to use that only focused on products rather than services and only focuses on payment rather than business services. If I did it again I’d go with either shopify or square.
I keep waiting for a big drop before buying them. I’d buy at $55.
But bigger picture. Paypal’s problem, in my opinion, is that they aren’t a traditional bank, but they also aren’t pushing a paradigm shift like crypto….they kind of exist in no man’s land.
Paypal should do something like acquire some stablecoin crypto companies and then their value would double… not because anything fundamental had changed, but because suddenly idiot cryptobros would start throwing money at it.
I’ve never had an issue with them and they offer me loads of credit, but their fees lately are insane.
Feels like a value trap. I’ve read the argument that it will eventually buy back enough stock to be a compound grower, but I’m not convinced at the moment.
Fuck PayPal
Keep stacking.
The best thing I ever did was rotate my PYPL money into other stocks a year or two ago. It’s almost like holding cash so it’s safe but I don’t tink it will outperform the index
new competitors are appearing left and right.
Blah blah blah dinosaur blah blah no moat blah blah users not growing blah blah
What you have is management cutting costs andoving away from low margin sales to higher margin. They have an incredible roiic, and they also have a new global wallet they are pushing. I did a write up on it not too long ago: https://www.reddit.com/r/AsymmetricAlpha/s/CwrxTJItke
As someone who used them heavily for my business when there was no other options, they are a horrible company to work with
No thanks
Absolutely shitty product which has no right to exist or survive