Payments Giants Get New Leaders as Industry Faces Disruption

PayPal and Square are getting new CEOs, signaling a time of change.
Leadership changes create uncertainty but also opportunity.
Stocks may fluctuate in the near-term but long-term prospects remain strong.
Payments industry facing disruption - new leaders can reinvigorate innovation.
Patient investors can benefit from volatility and scoop up shares at discounts.

barrons.com

Relevant topic timeline:

8/7/2023

PayPal: Don't Be Too Short-Sighted (NASDAQ:PYPL)

Main financial assets discussed: PayPal (NASDAQ: PYPL) stock Top 3 key points: 1. While PayPal's growth has slowed down, its earnings per share (EPS) is growing at double digits, total payment volume (TPV) growth is accelerating, unbranded processing is gaining traction, and operating margins continue to expand. 2. Transaction revenue growth is driven by an increase in TPV and the growth of Braintree, offset by a slowdown in PayPal's core products and services. 3. PayPal's take rates and margins are declining due to the growth of unbranded processing, but the company is focused on improving monetization and introducing higher-margin services. Recommended actions: **Buy**. The article suggests that PayPal is still a high-quality business capable of consistent growth. The stock is trading at a low valuation, and there is potential for upside as the company improves margins and returns to growth.

8/7/2023

PayPal: Don't Be Too Short-Sighted (NASDAQ:PYPL)

The article mentions PayPal (NASDAQ:PYPL) stock. The author's suggestion is to buy PayPal stock as they believe it is a high-quality business capable of consistent growth. The author highlights that while PayPal's growth has slowed down, its earnings per share (EPS) is growing at double digits, total payment volume (TPV) growth is accelerating, unbranded processing is gaining traction, operating margins are expanding, and the company is aggressively buying back shares. The author also discusses the main takeaways from PayPal's Q2 results, including revenue growth, TPV growth, declining take rates, and declining active accounts. The author analyzes PayPal's profitability, financial health, and valuation. The author concludes that PayPal is trading at a large margin of safety and has the potential for significant upside.

9/18/2023

PayPal Faces Slowing Growth and Rising Competition Under New CEO

PayPal's incoming CEO, Alex Chriss, faces significant challenges as Apple's foray into digital payments and growing competition from Square's parent company, Block, continue to pressure the company's stock and profitability.

10/2/2023

PayPal Stock Poised for Rebound Due to Attractive Valuation and Ongoing Business Growth Despite Recent Underperformance

The article discusses the stock of PayPal Holdings (NASDAQ: PYPL). The author gives the recommendation to buy PayPal stock, stating that its underperformance provides a compelling investment opportunity. The author's core argument is that PayPal's long track record of growth and strong business performance will cause the stock to rebound over the medium to long term. The key information and data provided include: - PayPal's net revenues grew by 8% in the first half of the year, and operating income grew by 45%. - Total Payment Volume (TPV) grew by 10% in the first six months of the year. - The growth rate of active accounts has slowed down, but the number of payment transactions is still increasing. - PayPal announced a partnership with KKR to sell up to $42 billion in BNPL receivables in Europe, which is seen as a positive move. - PayPal's balance sheet carries approximately $10.6 billion of debt, but it has a significant cash position and consistent free cash flow generation. - PayPal's enterprise value is calculated at around $64.9 billion. - The article mentions the risks of competition, leadership changes, and a slowing rate of inflation for PayPal. Overall, the author's analysis suggests that PayPal's business performance is strong, and the stock's underperformance presents a buying opportunity.

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Posted 9/20/2023, 7:30:00 AM

Payments Giants Get New Leaders as Industry Faces Disruption

PayPal and Square are getting new CEOs, signaling a time of change.
Leadership changes create uncertainty but also opportunity.
Stocks may fluctuate in the near-term but long-term prospects remain strong.
Payments industry facing disruption - new leaders can reinvigorate innovation.
Patient investors can benefit from volatility and scoop up shares at discounts.

barrons.com

Relevant topic timeline:

8/7/2023

PayPal: Don't Be Too Short-Sighted (NASDAQ:PYPL)

8/7/2023

PayPal: Don't Be Too Short-Sighted (NASDAQ:PYPL)

9/18/2023

PayPal Faces Slowing Growth and Rising Competition Under New CEO

10/2/2023

PayPal Stock Poised for Rebound Due to Attractive Valuation and Ongoing Business Growth Despite Recent Underperformance