Do you think Stripe is worth 35 Billion?

PayPal URQL21
Sep 19 23 Comments

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TOP 23 Comments
  • American Express FreeButter
    What am I missing? Why is Stripe worth more than Square?
    Sep 20 2
    • Two Sigma XJhI36
      Because Square is reality, Stripe is imagination?
      Sep 20
    • PayPal / Eng
      benihana24

      PayPal Eng

      PRE
      PayPal, Venmo
      benihana24more
      @XJhl36 ditto!
      Sep 20
  • Goldman Sachs fake engineer
    Stripe makes money off it's small customers, who get charged a high fee. As those companies grow and gain leverage, Stripe has to cut the fees until they have no economic profit left.

    Aka, it's currently making money from all the early stage startups. Once the startups are gone or matured...
    Sep 20 3
    • Facebook udaJ27
      This is saying children clothing store won't survive once the kids grow older. By then there will be new startups.
      Sep 20
    • Goldman Sachs fake engineer
      You think there will be more startups than at the height of the silicon valley tech boom? I'm not optimistic about that.

      The valuation only makes any sense if you think their new business efforts are going to go really well... Which they might. It's definitely a very high risk investment at this price.
      Sep 20
    • Facebook udaJ27
      Sure it will drop when the recession finally comes, then there will be new height after economy recovers. Tech is not getting replaced anytime soon.
      Sep 20
  • Bloomberg DINE<GO>
    If their revenue and profit align, then without breaking a sweat. Compare to PayPal and 🤮 Heartland Payment Systems/FirstData. The key will be winning ever larger customers starting by retaining the startups that grow.

    I don't think you understand what kind of garbage fire the ecosystem was before Stripe came.

    You would pay a fee to Authorize.net who was only a gateway, you would have 2 more parties and often middlemen and resellers, each taking a cut. Each was a high-touch sales call, lawyer for contract, etc.
    Sep 20 3
    • Goldman Sachs fake engineer
      They don't though, the revenue includes all the credit card processing fees. For all the larger customers, the cost of goods sold is pretty close to the revenue.

      With all those people on their payroll, I have a hard time seeing the retained earnings exceeding a few hundred million. They've executed well, but 35bn is a big number.
      Sep 20
    • Marqeta Pn8€cd
      ☝️
      Sep 20
    • PayPal Isjnd
      ☝️
      Sep 22
  • Credit Karma
    KennethM

    Credit Karma

    PRE
    Google
    KennethMmore
    What’s Stripe’s annual revenue? Do we know what their growth rate and profit margins are?
    Sep 19 4
    • Dropbox topbox
      Exactly! We don't know and they won't tell us.
      Sep 21
    • Barclays PLC kuberoot
      You ask stupid questions Kenneth. #Believe
      Sep 23
    • Pivotal Axe Cap
      GOOD point
      Sep 24
    • Credit Karma
      KennethM

      Credit Karma

      PRE
      Google
      KennethMmore
      These questions have been brought to you by Econ 101. :)
      Sep 24
  • New fssio
    Yes. Kicking myself not joining the company I'm 2011
    Sep 19 2
    • Facebook udaJ27
      You can still join now
      Sep 19
    • New fssio
      Too late to make any f*#* you money
      Sep 19
  • PayPal / Strategy Makai 🏝🏄
    Irrational - no way they are worth more than adyen and certainly not 1.5x more
    Sep 20 0
  • new Mcohen
    10 years ago, Who would have thought amazon would be worth 1Trillion dollars today??
    You never what Stripe has planned in the near future 3-5 years from now.
    Sep 20 0
  • MassMutual / Eng
    NkOS62

    MassMutual Eng

    BIO
    Lead Software Engineer
    NkOS62more
    Stripe ... coinbase ... on the tags.

    Would you pay $1000 for a slice of pizza?

    No?

    Neither would I. I can smell a stupid buy from a mile away.
    Sep 20 0
  • Wells Fargo seeyeeyeo
    I worked with both Stripe and Braintree. I choose Braintree to integrate with and it was superior to Stripe in 2013. But Braintree got acquired by Paypal for a paltry 800 million.
    Sep 24 0