With all the nervousness and frothing at the mouth of the big bad bogeyman PayPal (more so by other BNPL) I think a healthy dose of "calm down dear" is due.
SPT already has a strategic partnership with Stripe and confidential deal set in place and it has not even begun yet but is about to be rolled out soon! Forget PayPal,
Stripe is the future!Here is the juicy bit for SPT holders from a critical and balanced analysis article out two days ago titled:
Stripe is the Internet's most Undervalued Company, and probably worth more than Goldman Sachs:
https://notboring.substack.com/p/stripe-the-internets-most-undervalued-ec3
Key Points from article:- Stripe is the second most valuable private startup in the US.
- Stripe is really undervalued at $US36 billion and estimated it's real valuation would be over $77 billion, or $5 billion higher than Goldman Sachs’ current market cap.
- Stripe is the most heavily online company of its competitors (including PayPal).
- Stripe is likely growing faster than its payments competitors.
- Stripe is likely processing more payment volume than competitors.
- Some of the biggest and fastest-growing companies use Stripe -- clients include Salesforce, Amazon, Shopify, Slack, Microsoft and Zoom
- Businesses launched on Stripe since the start of the pandemic have generated $10 billion in revenue.
In 7 Powers, Hamilton Helmer writes about the seven moats that a business can leverage to make itself “enduringly valuable.” The case studies in the book highlight companies that use one or maybe two of the seven to build moats that sustain profits over a long time period.
- Netflix takes advantage of scale economies and counter positioning.
- Facebook and LinkedIn build network economies.
- Oracle has high switching costs.
- Tiffany’s has a powerful brand.
- Pixar’s “Brain Trust” is a cornered resource.
- Toyota’s Toyota Production System demonstrates Process Power.
Stripe has all sevenWhat the Aussie retail investors don't know and what the instos and traders know is that
PayPal is losing market share to Stripe year on year. Current market share of Stripe compared to PayPal in English speaking countries can be seen in another of my earlier threads:
https://hotcopper.com.au/threads/stripe-network-leverage-opportunity.5591999/?post_id=46935122This is only one data source (DataNyze) and only covers Stripe and not Stripe Checkout (Stripe's real market share is much larger). Dedicated investors can dive deeper into the data to discover new trends. Forget worrying about PayPal. Let the bears have their fun and let the timid go, it won't last! Stripe is not a threat to SPT, long term holders will be rewarded when the "growth tap" of Stripe deal get's underway, watch this space!
