Uggghh | PayPal Stock

Stealth Wealth Investing•May 21, 2026

Summary

Luke provides a post-earnings analysis of PayPal, expressing deep disappointment with the company's current trajectory. He notes that the recent earnings were mixed at best; while Venmo continues to perform relatively well, overall EPS and growth have slowed significantly. Luke is particularly critical of the new management team, which he perceives as moving away from the transformational growth strategy of the previous CEO toward a more conservative 'old school' corporate style. He highlights a lack of progress in ad monetization despite the company's vast data resources and observes that the current communication from the board is filled with 'corporate speak' that fails to inspire confidence.

Luke’s market outlook for PayPal is bearish regarding its potential as a growth engine. He believes the new CEO is focused on maintaining the existing business, implementing share buybacks, and potentially increasing dividends rather than taking 'big swings' to expand into new markets or accelerate revenue. Although Luke acknowledges the stock is 'stupid cheap' and likely undervalued even for minimal growth, he emphasizes that he bought the stock for growth re-acceleration. Since that catalyst is no longer present, he has decided to sell his position and move on.

PayPal (PYPL): Luke characterizes the earnings as mediocre, noting that guidance was only maintained because it had been previously lowered. He highlights the absence of an ad-revenue strategy and a shift toward conservative management as the primary reasons for his exit. He mentions the valuation is 'stupid cheap' but no longer fits his portfolio goals.

Palantir (PLTR): Luke uses Palantir as a benchmark for effective leadership communication, contrasting their transformational tone with PayPal's current dry corporate style. He cites the stock as a major 'winner' in his portfolio that has helped offset the losses incurred from PayPal.

Google (GOOG): Luke compares PayPal's dry, mechanical earnings calls to those of Google, noting that while such calls are difficult to sit through, they are common in tech. He identifies Google as a successful investment in his portfolio that has seen a significant run over the past year.

Mentioned Stocks

PLTR

Sentiment: BUY

Reasoning: Luke refers to Palantir as a 'winner' in his portfolio and praises the transformational tone of its leadership, using it as a positive contrast to PayPal's current management.

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PYPL

Sentiment: SELLAction: SOLD

Reasoning: Luke is exiting his position because the original thesis of re-accelerated growth is no longer valid under the new leadership. He describes the management's tone as 'corporate speak' and believes they are shifting to a low-growth, safety-first model. He notes the valuation is 'stupid cheap' but it no longer aligns with his growth-oriented investment goals.

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GOOG

Sentiment: BUY

Reasoning: Luke mentions Google as a high-performing stock in his portfolio over the past year, noting that its gains have helped offset losses from PayPal. He also compares their earnings call style to PayPal's.

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