Every time I see a stock with a big drawdown, I get this urge to investigate to see if Mr. Market was wrong. PayPal's share price dropped over 80% from $308 during its peak in 2021 to $58 today. So what’s the bad news plaguing the company? 1. Overoptimistic Projections: CEO Dan Schulman, riding high on the COVID-induced surge in PayPal accounts, projected 750 million active accounts by 2025. This ambitious goal was later retracted, shaking investor confidence. As of September 2023, active accounts suffered a small decline from its peak in 2022 and stands at 428 million. 2. Declining Margins: P...
The rest of this report is for members. Become a member to read it and the full archive since 2021, or log in below.