shares of PayPal

PayPal sinking today after the company cut its annual operating margin guidance in earnings last night.

Deja Bose has been looking into the numbers and how they stack up in today's Tech Check,

Debo.

Mel, the earnings weren't great, but as some have noted, they weren't a complete disaster.

The company did raise its revenue and profit outlook for the year but the focus is on margin

contraction today. There is another way though of looking at PayPal's

fundamentals and that is put them next to rival block where it competes on

payments and the Venmo versus Square Cash digital wallets, P to P.

In terms of free cash flow, gross margins, EBA.

Basically, profitability, PayPal looks to be the better play,

yet it trails Block in terms of valuation by a mile.

Block's forward, price to earnings multiple, more than doubled out of Pay-Pales.

Something that short-seller Hindenburg noted in its recent report on Block, writing,

quote,

to make up for these fundamental realities,

Block has extensively relied on non-gap adjustments

to report growth despite weakening metrics.

The flip side, however, I was talking to Dan Dola of an analyst that covers both

companies this morning and I asked him essentially why are investors shunning PayPal?

He said quite simply that Block is the more innovative company.

Jack Dorsey has done a better job of making a viral product,

...