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.
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.
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.