PayPal Holdings Inc. (PYPL-Q)

Poor fundamentals. Don't sell until later this month after tax-loss selling is done.

He still owns a small position, less than 1%. Leader in transaction and payment processing. Venmo has taken off extremely well in Europe, not as much traction in NA. Reporting has been great, new CEO. Good runway.

It has a new CEO and its recent quarter was decent. It needs to sell off non-core assets and re-structure. Lots has to go well with this. There are four million actual users.

Shares have come down a lot to 11x forward PE. The payments space is risky, and PYPL has lost market share. They have Venmo, are on Amazon as payment system, generate free cash flow, and new managers are oriented to profitability. 

It is not used as much now. There have been senior management changes and lots of competition. Even though it has a lower multiple she prefers Visa.

More consumers are going with payment solutions embedded in phones. Merchants are using other online platforms. Competitive position could be under attack. Profitable, good free cashflow, low valuation. He prefers Visa.

Fine business, but an also-ran. Visa or MA are the two places to be. 

Seems to be basing. Trading below the falling 200-day MA, not a positive technically. New CEO could spark a catalyst. Reasonably valued at 11.5x forward PE, with 15% forecast growth rate. Could be value, but chart needs to improve before committing.

So many switched from cash to online payments during Covid. Solid free cashflow, but too much competition directly in the space now. He prefers Visa in that world, as it clips money no matter which product is used.

3/10 on value. Not one she'd want to touch. Chart's a little scary. Street is split between Buy/Outperform and Hold. Target price is based on spending, so it's not a buy heading into a potential recession. Wait for a positive technical uptrend.

Has since sold shares.
Not the best company - payment sector very competitive.
Would prefer to invest in Visa & Mastercard.
Needs a turn-around in the business.
Management not stable. 

The stock has been horrible and she's running out of patience for it to recover, but is holding on for now. They still have the dominant market share in online payments, but it isn't performing. She hopes the new CEO can increase revenues, improve performance and raise guidance. 

You can't even short it, because shares have fallen 80% in the past two years and sentiment is so bad. The new CEO is a good move, though. The pandemic is over and their relationship with Ebay is long done.