PayPal: Real Structural Problems To Be Solved

Invest Heroes2.54K FollowersFollow5ShareSavePlay(8min)CommentsSummaryPayPal underperformed, falling 38% vs. the S&P 500's +23%, due to weak branded payments and disappointing 2026 guidance.Recent earnings missed consensus: revenue at $8.7B (+4% y/y), EPS at $1.23, with transaction margin dollars growing only 3%.Branded payments growth slowed sharply; management cites rising competition, macro headwinds, and market share loss as key challenges.We set a Hold rating, withdraw the target price, and see 2026 as a lost year with potential turnaround by 2028. chameleonseye/iStock Editorial via Getty Images Last time we covered PayPal Holdings, Inc. (PYPL) more than a year ago. Since then, the stock fell 38% vs +23% return of the S&P 500 index. We attribute such weak This article was written byInvest Heroes2.54K FollowersFollowInvest Heroes LLC is a CIS-based research firm founded in 2018. Since then, we provide equity and fixed income research services which become more and more well-known locally among both professional investors and private clients. Here’s what we do: - Cover top 120+ Russian, US and Chinese stocks - Cover 200+ Russian bonds (corporate, SOE’s) Provide our research as a paid service to several institutional clients, a couple dozen of asset managers/PM’s and about 3000 private clients Our team consists of 2 strategists as well as a team of analysts (equity market team & 1 fixed income). 9 analysts are currently working in our team, which has achieved global professional recognition. In the first year, we got into the Refinitiv and Factset, in the second year our estimates began to participate in the Refinitiv consensus, in the third year we are the best analysts in the Refinitiv rating for a number of Russian companies and we are in a process of signing with S&P Market Intelligence. Our forecasts are often ahead of the market, because of detailed business model built for each company. Contact details Sergey Pirogov CEO +7 (919) 762 76 64 s.pirogov@invest-heroes.ru Aleksandr Sayganov Head of Research +7 (708) 1238294 a.sayganov@invest-heroes.ruAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.