PayPal (PYPL, Financial) detracted from performance during the quarter and for most of the year. During the most recent quarter the Company reported +14% growth in currency-adjusted total payment value (TPV) which helped drive +12% revenue growth. Management gave a cautious outlook for the holiday season as its core e-commerce addressable market continues to normalize post-Pandemic. With most of the disruptions related to eBay and also Pandemic normalization largely complete, PayPal can resume its margin expansion efforts in the new year as its payment’s platform remains highly scalable. Meanwhile, disruption in capital markets should hamper its unprofitable competitors in the payments space and allow for more opportunities related to M&A.
From David Rolfe (Trades, Portfolio)'s Wedgewood Partners fourth-quarter 2022 letter.
