WU - PayPal: Why I Sold All My Shares (Rating Downgrade)
2024-04-25 17:46:10 ET
Summary
- PayPal stock has cratered more than 80% since its peak in 2021 amidst a declining user base and slowing revenue growth.
- Stiff competition and challenges presented by Venmo and Braintree are pressuring PayPal's pricing power and transaction take rate.
- Analysts revised the 2024 EPS growth expectation to 0%, marking a "transitory year" and a lack of progress on the efficiency improvements.
- PayPal's stock is trading at a cheap valuation of 16.9x its earnings, but the lackluster top-line growth and no bottom-line growth will weigh on the stock in 2024.
- I have completely divested my stake in PayPal as I expect the stock to be dead money this year, instead rotating to better opportunities.
PayPal ( PYPL ) stock has seen a wild ride in the last few years, with many investors losing faith in the stock ever recovering, given the 80% slump.
If you bought the stock near its all-time high of $310, you would need the stock to rally at least 475% from today's price to recover most of your losses....
PayPal: Why I Sold All My Shares (Rating Downgrade)