Jody Knight @JodySlaney: "🟢 Why the PayPal Thesis..."

United Kingdom

🟢 Why the PayPal Thesis Hit a Wall - $PYPL (PayPal Holdings) 1. Branded Checkout is Cratering The core of the business, the high-margin "PayPal button", grew a measly 1% this quarter (down from 6% a year ago). While Braintree and Venmo show volume growth, they carry razor-thin margins. PayPal is processing more money but keeping less of it. 2. The Buybacks Management announced a massive $6B share buyback for 2026. Normally, retiring 15-20% of shares makes EPS skyrocket. Instead, guidance is flat to down. This confirms a grim reality: the underlying business is shrinking so fast that billions in buybacks can only barely mask the decline. 3. Leadership Chaos The sudden exit of CEO Alex Chriss for Enrique Lores mid-pivot is a massive red flag. Transitioning to a "cost-cutter" CEO suggests the company has shifted from a growth mindset to survival mode. We’ve been promised a "transition year" for three years straight; the market and myself have finally run out of patience. 🟢 Final Verdict: Opportunity Cost While PayPal is "cheap" on paper, and Venmo remains a strong asset, the core engine stalling and execution failing as a one two punch has got my bailing on this one. I love a turn around story and I've had great success in picking winners but Paypal.... Your taking the micky now. Sitting in a stagnant stock is an expensive mistake in a market full of high-performers that are selling at discounts today. 🟢 My Plan: I have closed my full position. I reallocated that capital into assets with actual momentum and game plans that have a proven history of delivering: SOFI, HOOD, ETOR, FOUR, META, RBRK, and NVDA. 🟢 If you found this post interesting, please consider adding me to your watchlist or copying my portfolio. 🟢 You can find a longer format article here talking in a bit more detail: www.patreon.com/posts/paypals-brutal-149914431?utm_medium=clipboard_copy&utm_source=copyLink&utm_campaign=postshare_creator&utm_content=join_link 🟢 Find Me: I post regular charts and research updates on my Patreon: www.patreon.com/c/JodyKnight_TheCraftyTrader etoro.com/people/jodyslaney @JodySlaney with CISI Lvl 3 Wealth & Investment Management 🟢 Disclaimer: The views expressed above are my personal opinion and do not constitute investment or financial advice. Please remember that your capital is at risk, and past performance is not a reliable indicator of future results. $NSDQ100 $SPX500 $SPY (State Street SPDR S&P 500 ETF) $NU (Nu Holdings Ltd.) $SOFI (SoFi Technologies Inc)