PayPal: A Classic Value Trap

2026-03-05 07:15:51 ET

PayPal ( PYPL ) is a company and a stock that I have some experience with. As a lifelong self-employed person, I’ve been using PayPal to get paid since 2011. As an investor, I also had a brief period of holding PYPL stock, though I exited not long after buying it. The problem at the time (I thought) was that the end of eBay’s ( EBAY ) ownership of PayPal was about to make the latter company’s payment app no longer work on the former’s e-commerce platform . In the end, PayPal remained on as a payment option on eBay; however, eBay’s in-house payment options reduced PayPal’s prominence on the platform. Revenue growth suffered, and free cash flow [FCF] turned negative ....

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