It’s a time of upheaval for payment companies PayPal and Square—and an opportunity for patient investors.
Unlike what Tolstoy said about unhappy families, unhappy stocks are often alike. The onset of the pandemic led to a surge in e-commerce and contactless payments—areas where PayPal and Block operate—and aspirations well beyond their core competencies. At PayPal, there were plans for a “super-app,” offering payments, online shopping, savings, and other tools all in a closed ecosystem.
PayPal shares gained 2.8% on Aug 14 when Chriss was announced as CEO, while Block shares tumbled 2.2% on Sept 19, following news of Dorsey taking the role. But despite the mixed stock reaction, the consensus on The Street appears the same: change takes time.On Block, Lisa Ellis, analyst at MoffettNathanson acknowledges that Henry’s exit is “a likely negative indicator” for the health of the Square business but she still remains optimistic about Block.
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Source: CNBC - 🏆 12. / 72 Read more »