Core Viewpoint - PayPal's growth has slowed significantly, while Robinhood has shown a strong recovery and growth potential, making Robinhood a more attractive investment option at this time [2][12]. PayPal Analysis - PayPal's stock has declined over 25% in the past three years, contrasting with Robinhood's nearly 280% increase [2]. - The company experienced a setback when eBay switched to Adyen as its preferred payments provider, but it initially managed to grow during the pandemic [3]. - PayPal's revenue growth has cooled, with only an 8% increase in both 2022 and 2023, and a decline in active accounts by 2% in 2023 [4]. - The take rate has not increased annually since its spinoff from eBay in 2015, indicating struggles to compete in the digital payments market [5]. - For 2024, PayPal's revenue and adjusted EPS are expected to grow by 7% and 21%, respectively, with analysts projecting 4% revenue growth and 8% adjusted EPS growth for 2025 [6]. Robinhood Analysis - Robinhood's revenue surged by 245% in 2020 and 89% in 2021 due to pandemic-related factors, but it faced a 25% revenue decline in 2022 as market conditions changed [8]. - In 2023, Robinhood's revenue rebounded by 37%, driven by market stabilization and the expansion of its ecosystem, including new financial products [9]. - The company achieved a 58% revenue increase in 2024 and became profitable on a GAAP basis, largely due to interest rate cuts and an increase in Gold subscribers [10]. - For 2025, analysts expect Robinhood's revenue and adjusted EBITDA to rise by 26% and 41%, respectively, while GAAP EPS is projected to dip by 8% [11]. Investment Conclusion - PayPal is transitioning from a growth stock to a value stock, likely trading at a discount for the foreseeable future without significant catalysts [12]. - Robinhood has substantial growth potential as it continues to attract investors and expand its subscription services, making it a more compelling investment choice compared to PayPal [13].