3Yr·

Why it is stupid to buy the PayPal dip.

PayPal had a good growth rate in recent years, which was priced accordingly.

Currently we are at a P/E ratio of 55!

And that after a month with - 20%

Ahh who cares about the P/E ratio for growth - tech stocks?

PAYPAL IS NO LONGER A GROWTH STOCK!

The user growth has slowed down extremely.

Retail in the US is open again and there the vaccination rate is relatively high.

Have any of you ever paid via paypal in retail?

No? Well, me neither.

But the deal with Amazon!!!

So: here the same: the existing Amazon users will fall back for the most part on the already deposited payment methods.

Why? Convinence.

Is but also the same reason why you buy from Amazon.

And also Amazon will grow less or stagnate in terms of retail because the stores are open again.

Why did PayPal try to buy pinterest?

Simple: they wanted to maintain their rating as a growth company. And that had fit with pinterest also to the kgv. But obviously it didn't happen.

19 Comments

Christian@christian

3Yr

Agree with you, considering going out at a loss. Also see little edge for Paypal in the long term

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LetsGrow@LetsGrow

3Yr

@christian I would definitely disagree. In the financial sector, there are few companies that have as much brand power and customer trust as PayPal. Only the duopolists Visa/Mastercard offer even more of a moat. I bought PayPal at around €98 and therefore see the situation more calmly. Can also only advise all who are now somewhat under water to remain calm.

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LetsGrow@LetsGrow

3Yr

@christian Addendum: but also once had 60% more shares of PayPal, which I unloaded at 200-250 €.

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LetsGrow@LetsGrow

3Yr

I think that because it is en vogue to bash PayPal right now, some forget the "origin" of PayPal and the core idea of its business. Like no other payment service provider, PayPal still manages to retain customers in higher-volume transactions by simply offering better service. Yes, you don't pay for your €3 ravioli in the supermarket with PayPal, but you do pay for your €3000 gaming PC. PayPal is especially strong where more and more transaction volume is flowing in, online "retail", i.e. e-commerce and the like. PayPal is one of the most convenient ways for Apple users to pay in the AppStore and for virtually all Apple-owned services, if you don't want to handle everything by credit card.

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MORE MONEY BOY 🤑@EnjoyCapitalism

3Yr

In the long term, cashless payment is still a gigantic growth market, as cash offers no rational advantage. The established providers will continue to profit from this development. I would not write off Paypal directly just because there is a weak quarter.

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Trex@MehrZumThema

3Yr

@EnjoyCapitalism naturally. Electronic payment is the future. But the question is: If you buy individual shares, you take a higher risk than if you buy ETFs. But you want more return, because the company grows faster than the market. The latter is currently no longer given. The stock is valued super expensive for the current growth. You will be outperformed by an ETF. Both in terms of return and risk.

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Money Game@MoneyGame

3Yr

@MehrZumThema Which ETF is supposed to have outperformed Paypal? The "normal ETFs" certainly not: https://www.awesomescreenshot.com/image/16480131?key=373f48196f9303e727c50cfc729de6bc

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Trex@MehrZumThema

3Yr

@MoneyGame yes, in the past! But I'm talking about the future. That is what is traded on the stock exchange. That's why the P/E ratio comes about.

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Money Game@MoneyGame

3Yr

@MehrZumThema But you don't know the future. Just because there are two weak quarters, you question the whole concept. I think that's fundamentally wrong.

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Trex@MehrZumThema

3Yr

@MoneyGame but the stock market trades the future and not the past.

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Raphael Steil@TheRealRapha

3Yr

Thank you for your assessment of this! P.S. if it continues like this, in 2 years no one will know what a P/E ratio is 😂.

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Dude Energy@DudeEnergy

3Yr

Gpay runs with PayPal among others

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SquirtGame@SquirtGame

3Yr

Via google pay you can pay with Paypal in retail stores

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Trex@MehrZumThema

3Yr

@SquirtGame good, I had forgotten that. For me, the CC is connected there.

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Simon@DerSimur

3Yr

When I still had an Android smartphone, I actually only bought retail with PayPal (because of Google Pay). But I'm not invested in PayPal either way and don't plan to be, so 🤷🏼‍♂️

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Moritz@Molizi

3Yr

I still believe that if Paypal really wants it, then in the future we will pay more often or even mostly with Paypal when shopping, than today. Paypal offers especially for the small stores, a lower fee for their payment option than Visa at the moment.

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MoonTraveler@Apollo11

3Yr

Don't forget the travel sector, which is starting up again. Booking, Airbnb etc. are also paid with PayPal... So I wouldn't write off PayPal completely...

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Wertspeicher@wertspeicher

3Yr

Thanks for the assessment. But to the point, have any of us ever paid with paypal at retail. I use google pay in conjunction with paypal (since credit union is not supported on google pay) for 90% of my retail payments. I don't think I'm the only one there.

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DR.@Baxxus

3Yr

"Have any of you ever paid by PayPal in retail?" - Yes, I now even use it to pay at the local bistro - it's an integral part of my everyday life.

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