I think the 5-year chart of PayPal Holdings tells you what you need to know about the stock and its prospects.
Back in July 2021 they were trading around $311.00 per share. Yesterday they closed at $41.70, down by -20.31% the biggest one day fall in the name for 4-years, as the company missed Wall Street’s forecast for Q4 2025 earnings, and announced that it was appointing a new CEO to replace Alex Chriss, who was only appointed in 2023. But who failed to implement a turnaround plan in that time.
HP Inc CEO Enrique Lores will take over from Mr Chriss on March 1st.
The stock is not without hope however, with nearly $32.0 billion in annual sales and 5-year earnings and revenue growth at 89.80% and 78.92% respectively. Whilst profit margins sit at +13.0%.
And following yesterdays fall the stocks market cap sits at a -$3.0 billion discount to its Enterprise Value.
Most telling of all though is the fact the stock has underperformed the S&P 500 by -68.81% over 12 months.
There is potential for a turnaround in the business, which could also be target for activists or PE investors, looking to unlock shareholder value. Which is often achieved through a combination of cost cutting, streamlining and disposals.
