The stock, now on lowest P/E on record and 17% FCF yield, is anticipating additional (large) downgrades. This report analyzes the earnings call and an investigation into the new CEO.
Really solid breakdown of the Lores appointment. That branded checkout deceleration (5% to 1%) in one quarter is brutal, especially when ecommerce is still growing mid-single digits. His HP track recrod shows he can manage costs but that stock went sideways for 6 years. The risk here is PYPL becomes acash cow focused on buybacks instead of actually winning back share from competitors.
Agreed. Paypal reckon the CEO change is about execution speed and clarity not about the plan itself. We will see. Its pretty clear they are struggling to get the merchants to work with them and reviews etc tend to say their tech is difficult and service is non-existent. So the ability to push through plans to reinvigorate branded checkout seems compromised. They do have the ad business and Venmo and BNPL growth (and supposedly Paypal bank) but you can imagine that the core could be going backwards for years, offsetting other plans.
I'll also add that it doesnt help a consumer facing tech business sell a message of being modern, when your logo still looks like your child did it on powerpoint after just discovering the shadow tool.
Really solid breakdown of the Lores appointment. That branded checkout deceleration (5% to 1%) in one quarter is brutal, especially when ecommerce is still growing mid-single digits. His HP track recrod shows he can manage costs but that stock went sideways for 6 years. The risk here is PYPL becomes acash cow focused on buybacks instead of actually winning back share from competitors.
Agreed. Paypal reckon the CEO change is about execution speed and clarity not about the plan itself. We will see. Its pretty clear they are struggling to get the merchants to work with them and reviews etc tend to say their tech is difficult and service is non-existent. So the ability to push through plans to reinvigorate branded checkout seems compromised. They do have the ad business and Venmo and BNPL growth (and supposedly Paypal bank) but you can imagine that the core could be going backwards for years, offsetting other plans.
I'll also add that it doesnt help a consumer facing tech business sell a message of being modern, when your logo still looks like your child did it on powerpoint after just discovering the shadow tool.