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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Shane M who wrote (58161)	10/13/2016 4:40:50 PM
From: Jurgis Bekepuris	1 Recommendation Recommended By Shane M Read Replies (1) \| Respond to of 78744

PYPL: Yeah, I agree PYPL has some/most characteristics of G: 1. Discontinuous innovation 2. Proprietary open architecture 3. High barriers to entry 4. High switching costs 5. Strong value chain formation 6. Tornado market extant or foreseeable My concern about PYPL is that it's weakish in all of these. On one hand, PYPL is almost the only choice for someone doing a website shop, especially if they want to accept international clients. On the other hand, their discontinuous innovation was long time ago (10+ years) and nowadays competition is appearing/catching up somewhat. I think the same could be said about High barriers to entry and High switching costs - they had a much better moat in the past than right now in US. Internationally, they may still maintain the advantage, but certain markets are being chipped at. And I think tornado was in the past, unless you expect worldwide tornado (while past tornado was more US based).