For PayPal, the Choice Is Clear

When PayPal Holdings Inc. (NASDAQ: PYPL)reported its fourth-quarter earningsthree months ago, the only thing investors seemed able to focus on was that PayPal's relationshipwith eBaywould be drastically changing after its contract expired in 2020. Despite PayPal management's assurance that this change in relationship would not affect its mid- or long-term guidance, analysts still seemed to have a hard time digesting the news.

The day the company reported its fourth-quarter earnings, PayPal's shares sank by a double-digit percentage and they have largely been trading sideways since.