PayPal has squeezed the last bit of juice in its SMB (35mn accounts) and Consumer (400mn accounts) business which are characterized by structurally high churn and mortality. For comparison, Dropbox has 17mn paying users out of 700mn registered users and yoy user base growth is ~3% in its case. PayPal is now pursuing profitless growth with its focus on commoditized and low margin Braintree (Payment Aggregator/Gateway) offering and the string of acquisitions it has put together over last few years (Spent $10bn+ in mostly cash).
Disclaimer – No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above are purely my own. I am not a licensed securities dealer, broker, investment adviser or a research analyst licensed or certified by any institute or regulatory body.
Disclosure – I do not hold a position with the issuer such as employment, directorship, or consultancy. I do not hold a material investment or a short position in the issuer's securities.
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