/biz/ - Business & Finance

PAYPAL ticker PYPL

bearish arguments are:
slowing revenue growth rates
margin compressions
increasing competition in digital payments
fears of slowing e-commerce sector
no longer a growth company
management shakeup (CEO retiring end of 2023)
take rates falling

bullish arguments:
neutrality of products (they have partnered with amazon, apple, ebay, and others)
30% of customers account for 80% of total payment volume
5Y low and forward P/E is 10
massive merchant side to PYPL (business payment solutions)

thoughts? seems like a value trap, but keep in mind that ADBE was in a similar spot regarding fears of slowing growth/maturing.

also, a lot of their FCF goes towards share buybacks, not really sure if thats good or bad but it does provide some downside protection