10 Questions For Paypal's 1st Analyst Day

Paypal Holdings Inc PYPL is scheduled to host its very first Analyst Day since it separated from eBay Inc EBAY on May 18 in San Jose.

Robert S. Peck of SunTrust Robinson Humphrey maintained a Buy rating on PayPal Holdings.

Peck delineated 10 areas where management is expected to provide information on Analyst Day.

The 10 Questions

“We are looking for incremental color around Transactions TPV mix in effort to better quantify the accelerating TPV growth and moderating take rate, as guided by the company,” the analyst mentioned.

Specifically, Peck seeks to better understand the contribution from BrainTree.

Secondly, given PayPal’s success in offering consumer credit and working capital loans for merchants to improve TPV growth, Peck expects an update regarding whether the company would continue to fund credit or whether it would look for partners to fund credit growth.

The third question Peck stated was related to cost rationalization, saying, “We look for incremental color around the cost rationalization opportunity that the company has talked about, including marketing and procurement inefficiencies.”

The analyst also expects an update regarding the talks with Visa Inc V and details on the potential outcome.

Next, Peck expects an update on the monetization of Venmo, along with an update on the Xoom integration, corridor expansion and future opportunities.

PayPal is also likely provide an update on the rollout progress of One Touch and its impact.

“We look for an update on momentum (and backlog) in signing new merchants and particularly larger merchants,” Peck said, adding that he also expected an update on strategy and progress.

Lastly, the analyst expects an update on the status of the end markets and competition, impact of FX and M&A opportunities.