Is PayPal a Buy Under New CEO Enrique Lores?
PayPal is a cash-generative payments business but growth and execution question its upside.
Analysts weigh valuation, Venmo monetization, buybacks, and the risk of commoditization.
– Financials: roughly 15% net margin and about an 18% free cash flow margin; valuation under 8x FCF.
– Management: repeated leadership changes; Enrique Lores took over with a turnaround mandate.
– Venmo: PayPal’s best consumer asset but still under-monetized; unlocking it is a key catalyst.
– Risks: intensifying competition from Stripe, Block, and Apple and commoditization of white label payments.
– Capital allocation: aggressive buybacks cut share count by about 28% and have been value-accretive.
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