Payment processors present cheap buyout targets
The guest argued that the payments sector is highly discounted and represents an attractive area for potential acquisitions.
The argument
While acknowledging competitive pressures and dilutive stock-based compensation, the guest highlighted PayPal and other payment processors as being fundamentally cheap, making them viable targets for private equity or strategic buyers.
The thesis, stress-tested
✓ What validates it
- ✓M&A activity or formal buyout offers in the payments space
- ✓Reduction in stock-based compensation as a percentage of revenue
▸ Risks discussed
- ▸High stock-based compensation diluting buyback effectiveness
- ▸Intense industry competition eroding margins
Hear it yourself
"A lot of these are cheap, but then you look at the stock based compensation stuff, and and that's, like, the depressing element of it is that, you know, it's not like an AGO where or a Devon where you can really trust, you know, the management teams to act in the best interest of of shareholders."
00:00 / 00:19
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE