PayPal Launches Links, Adyen & LVMH Deepen Collaboration, Leslie's New CFO
Portfolio News #4
Hi All
Welcome to our brief overview of portfolio news from the past few days.
Paypal
PayPal has launched "PayPal links," a new feature allowing users to send and receive money via a personalized one-time link that can be shared in any messaging app. The company also announced that crypto will soon be directly integrated into this P2P flow.
This is a strong strategic move to expand PayPal's ecosystem. By simplifying P2P transfers and enabling sharing beyond existing users, PayPal can attract new customers who receive funds from current users.
Adyen and LVMH collaboration
Adyen expanded its collaboration with LVMH, unifying payment systems across nearly 50 of LVMH's Maisons (brands) and over 1,000 stores worldwide.
Expanding colllaboration with the world's largest luxury group is a powerful endorsement of their technology and global reach. For LVMH, this is a move to standardize its systems and improve efficiency.
Leslie’s
Leslie's announced the appointment of Jeff White as its new Chief Financial Officer, effective October 5th. White joins from Sportsman's Warehouse, and the outgoing interim CFO will remain as an advisor until January to ensure a smooth transition.
While the appointment of a permanent CFO is typically a positive step, this marks yet another significant change in Leslie's executive suite. The frequent leadership turnover here continues to raise concerns about the stability and effective execution of the company's crucial turnaround plan.
Furthermore, we question the immediate value a CFO primarily from a sports retail background (Sportsman's Warehouse) can bring to Leslie's specific challenges. Mr. White's relatively short tenure at Sportsman's Warehouse (2022-2025) also adds to our reservations regarding the long-term stability of this new financial leadership.
While financial incentives often drive such moves, they don't appear to be overwhelmingly compelling in this instance. Mr. White's base salary of $575,000 and a target bonus of 85% of his salary at Leslie's are comparable to the approximately $1 million (comprising $0.5 million base salary and $0.5 million in stock awards) he received from Sportsman's Warehouse. While the 85% cash bonus and a $295,000 one-time sign-on bonus offer some incentive, we view the overall situation with caution.
Other Updates
The Fed Meeting: All eyes are on the Federal Reserve today, with a rate cut 0.25% widely expected.
Meta: The annual Meta Connect conference begins today, where the company is expected to unveil its new "Hypernova" AR glasses, featuring a small display and an expected cost of $800.
TikTok Deal: President Trump has extended the deadline for TikTok's U.S. divestment to December 16th, as a framework deal to transfer TikTok’s US assets to US ownership is reportedly reached with China.
That's a wrap. See you soon.
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