PayPal Just Posted Its Worst Quarter Yet, But Now It May Be At Rock Bottom (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• PayPal just delivered another weak quarter, with branded checkout once again dragging down growth and missing consensus expectations.
• Management plans heavier growth investments that will pressure 2026 transaction margin dollars, after previously failing to translate similar spending into stronger fundamentals.
• The incoming CEO, Enrique Lores, has a mediocre track record at HP in delivering outsized shareholder value. So his appointment does not yet inspire confidence in a PayPal turnaround.
• PayPal now trades at a steep discount vs. its payments peers on forward earnings, near multi-year trough valuation levels.
• The post-earnings 20% sell-off on very high volume resembles a capitulation move that often coincides with long-term bottoms in a stock.

Read the full article here.