Savvy Trades and Investments

[Bobwins]

PYPL $66.70 Another possible value trap. I bought leaps 6/24 $70 strike. Height of the Pandemic, PYPL was $288. I bought these a couple of days ago when it was $64. 52 week low is $58.95 so it's already bounced a bit. Profitable but exodus has been because of shrinking margins and lower growth profile. 435 million users! Owns Paypal, Venmo, Honey and several other fintech brands. They own a white label version of themselves to allow other merchants to offer paypal type services under their own brand. This is accounting for some of their top line Total Processed Value pymts but reducing margins at the same time. Paypal is forecasting topline growth of around 7% and margin shrinkage, which represents why so many have abandoned ship. Another risk is their CEO is retiring at year end so they need to find a new CEO. Market wants to see who is taking over the ship before jumping back onboard.

I actually like this "value trap" better than AAP. Profitable, trading at around 13X forward earnings versus historic range in the high 20's.
They have 435 million users and have a global marketplace to expand into. They are forecasting increased profits this year as they trim costs ahead of the many times forecasted global slowdown. I bought leaps to give me time for them to find a new CEO and to see if cost cutting and organic growth in this fintech pioneer can show up in the p&l and bring back a little shine to the stock.