PayPal stock $pypl is trading down 20% since the last time we checked in - 18 months ago - at which time we said pypl stock wouldn't be interesting at any price. That's only because we invest in two areas - disruptive growth and dividend growth - and PayPal's days of disruption appear over. The problem PayPal has is trying to resurrect growth as management talks about focusing on current accounts. That land-and-expand strategy comes with lowering take rates, so even through transaction volumes are increasing, revenue growth isn't keeping up at the same pace. PayPal investors who look back at the lofty share prices of old need to remember those were justified by management's claim of hitting $50 billion in revenues by next year. That doesn't appear to be happening as 2023 expects to see around $29 billion. PayPal's problem is that the market is now seeing them as more of a value stock than a growth stock.
Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/upBa_o4cGZE.
