PYPL - PayPal: Overpromised Underdelivered

2024-02-13 17:02:48 ET

Summary

• Q4 results were strong — but that was completely eclipsed by poor 2024 guidance.
• Investors didn't like the guidance due to management's “shock the world” statement.
• In short, management overpromised and underdelivered. But hopefully, they'll do the opposite throughout 2024.
• They need to outperform expectations in 2024. Otherwise, the stock will continue to struggle.
• Watch out for management's “updated” guidance.

Introduction

Being a PayPal Holdings, Inc. ( PYPL ) investor has been particularly frustrating. Since its peak in July 2021, the stock is down 80%. Furthermore, the stock has been bleeding slowly over the last twelve months, making lower lows and lower highs.

As investors try to look past PayPal's dismal years, many investors have high expectations for PayPal heading into 2024 given recent management changes and the new CEO's "we will shock the world" statement.

Unfortunately, investors were recently slapped in the face as the company's Q4 earnings disappointed - the actual results were great, but 2024 guidance was a real party pooper....

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