It is trading at $61 as of 09/09/'23 The stock is down -18% YTD and -35% YoY and back to 2017. Paypal's business model was developed for the 1990's. Today there are countless ways to move money online, many of which are at razor thin margins for the processor. Real money is still being made by Visa/Mastercard as they've entrenched their "fiat layer 2" into the mechanics of the financial system. Paypal is really just a middleman of Visa/MC and adds very little value. Stripe has emerged as best in class for online payment processing. Wise/Revolut best in class for global money transfer. CashApp/Venmo for USA domestic P2P. Yes, Paypal owns Venmo, but Venmo doesn't earn sh\*t. The cost per transaction is considerably lower than PayPal. PayPal does nothing best. It's mediocre at everything. Their business hit a ceiling where growth is no longer possible. Online payments will trend towards zero fees. Technology makes the process of moving money increasingly easy. There is no longer room for a company trying to take 4-5% per transaction. #investments #stock #stockmarket
+1, when interest goes lower - it will go past 100.
I doubt it. Their market share is no longer secure.
Thanks for answering a question nobody asked
Read about the volume that Braintree (owned by Paypal) generates. It is Paypal’s “unbranded” payment service.
I work for Braintree . It makes shit low in margins. Volumes that are of no value
I need to dial out of this stock. What you wrote makes perfect sense
I thought you were going somewhere with the argument and then you said “Venmo doesn’t earn sh*t” and “online payments will trend towards zero fees”. CashApp has had lower stickiness than Venmo. Stripe is a new kid on the block and recency bias is clouding your judgement. And they both target different segments if you haven’t thought about that- one is more common in SMBs and other targeted large businesses where margins are higher. Clearly you drew a conclusion and tried making an argument that fits the narrative.
This is hilarious shallow write up lol.
You’re gonna get your mind blown when you learn about the upper limits of stripe’s money transmission size and how many subsidiary companies stripe/adyen/new hot brand have to use to make an international payment. I, like everyone else, thinks PayPal sucks, but they suck for none of the reasons you’re mentioning. Payment fees are not trending towards zero. They’re going up. Networks are charging more, and money transmitters are introducing alternative rails to skip networks but still charge interchange. The stock is getting beat up because zero interest rate got everyone whipped up into a frenzy that e-commerce was going to take over retail since everyone will live forever in their apartments. Wait for the next large e-commerce trend and you’ll see PayPal’s value
Curious to know why you think PayPal sucks. For me it’s because they haven’t been innovative at all in recent years and have allowed the competition to creep up.
I wrote a stupid long response when you nailed it. PayPal is not FIS or FiServ but acts like they are. Enterprise will rarely pick them because they are not enterprise ready. Startups won’t pick them because there is no single unified platform. Their lack of innovation is why everyone hates them. It’s like every time you have to work with salesforce. But you cannot deny that despite their anti-patterns that they have a meaty middle of businesses. No one is good at that space which allows PayPal to continue growing.
Will their recent stable coin introduction give them any advantage?
It will allow them to not work with swift which will shave 30bps off an international transaction. How it helps domestically is confusing
Interesting. May be PayPal can become the default international money transfer service
South Indian curry gone bad?
research more, look into our earnings instead of assuming things
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