The number of payment transactions has also solidly grown, as has revenue. Now everything hasn’t been perfect, as the company has seen its number of active accounts stop growing. 35 equities research analysts have issued 1 year target prices for PayPal’s shares.
- According to ETF.com, 288 ETFs held 109.6 million shares of PayPal as of late 2023.
- However, many brokers will allow you to transfer your PayPal balance into an account and use it to buy stocks.
- 35 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for PayPal in the last year.
- The company operates a portfolio of web-based applications that provide a host of other services as well.
In terms of scale, the company boasts more than 430,000,000 active accounts including merchants and consumers. In Q2 of 2022, that equated to 5.5 billion individual transactions and more than $340 billion in total payment volume. In regards to depth, the average account made more than 48 transactions or just https://www.fx770.net/ over 4 transactions per week. In terms of market share, Paypal began the COVID-19 pandemic with more than 50% of the market share in global digital payments and that figure increased in its wake. Revenue growth also helps drive stock price appreciation, especially for companies earlier in their growth cycle.
A PayPal stock-trading launch would come at competitive time for the fintech industry. Square, PayPal, Robinhood and SoFi offer a list of overlapping products and describe the same mission of being a one-stop-shop for finance. Cryptocurrency and stock trading are seen as ways to keep consumers engaged on these payment platforms. Profit growth is a big factor in powering stock price appreciation over the longer term. It’s an ideal area for beginning investors to focus on before buying shares of any company. If you still need to open one, these are some of the best-rated brokers and trading platforms.
PYPL price to book (PB)
PayPal Holdings, Inc. is one of the world’s largest and oldest fintech companies having gotten its start in 1998. Originally a payment processing application named Confinity, the company will join forces with eBay in 2000 and then merge with the company in 2002. In 2008 Bill Me Later joined the company and eventually became Paypal Credit, the company also launched mobile apps that year that made it even easier and more accessible to millions of consumers. The Securities and Exchange Commission said last week it is stepping up its inquiry into “gamification” and how brokerages use technology to interact with their customers.
A hold rating indicates that analysts believe investors should maintain any existing positions they have in PYPL, but not buy additional shares or sell existing shares. Now, PayPal provides digital financial infrastructure, services, and support across a wide range of applications globally including but not limited to payments, wallet services, and credit. The company is headquartered in San Jose, California, and is built on the belief that everyone has the right to participate in the global digital economy. The company operates a portfolio of web-based applications that provide a host of other services as well.
Key metrics for the company have consistently grown over the past three years despite the precipitous fall in its share price. While helpful for user growth and revenue, the retail trading boom has also invited more regulatory scrutiny. If PayPal did look to get full approval as a brokerage firm alone, it would need to complete a new membership process through the industry’s main regulator, FINRA. The San Jose, California-based company recently hired brokerage industry veteran Rich Hagen as part of the move, according to one of the sources.
PayPal Holdings: A Period of Transition with Long-term Growth Potential
His current job description outlines PayPal’s efforts to “explore opportunities” in the consumer investment business. The payments giant seemed unlikely to split its stock anytime soon. Although shares had surged more than 600% at one point following its separation from eBay, the stock had returned most of that ground by late 2023 (only rising about 60% to about $60 per share). The stock would need to surge again before PayPal would likely consider a stock split.
More than 10 million new individual investors have entered the market in the first half of this year, roughly matching last year’s record level, according to estimates from JMP Securities. A combination of stay-at-home orders during the pandemic, government stimulus checks and viral events like the rise of GameStop in January have spurred on new interest in the stock market. Get step-by-step guidance on investing in Google (aka Alphabet) stock and learn the ins and outs of this behemoth tech company. One of the best setups for stocks is a cheap valuation and low expectations. If PayPal can surpass what looks like a low bar, 2024 could be the start of a turnaround for the stock.
Shortly after the Paypal’s IPO, it was acquired by eBay in July of 2002 for roughly $1.5 billion and valued at $23 a share. There was a lot of speculation around why the two companies split. PayPal indicated it was because eBay and PayPal wanted to be two stand-alone companies in order to capitalize on their individual growth opportunities. After the spin-off, many investors did not see the company growing as expected, and a massive sell-off of the PayPal stock ensued, leading to PayPal stock price falling as low as $30.82.
However, many brokers will allow you to transfer your PayPal balance into an account and use it to buy stocks. You’ll need to open a brokerage account with a platform that supports PayPal and link your accounts to buy stocks with your PayPal account. PayPal is a leading digital payment platform that’s highly profitable and growing fast. Although PayPal’s profits dipped in 2022, the company expects earnings to resume their upward trajectory in 2023.
The bottom line on buying PayPal stock
The agency mentioned behavioral prompts used by online brokerages and investment advisors that may encourage investors to trade more stocks and other securities and take on more risks. It generates significant free cash flow, the bulk of which it’s already returning to shareholders through share repurchases. It could eventually start allocating some of that cash toward dividend payments. Earnings were under pressure due to heavy investments in its platform to improve the customer experience. The company believes its investments will drive growth over the long term.
Here’s what you need to know about investing in this immensely profitable small-box discount supermarket. Increasing customer engagement and personalization are two other areas that PayPal is targeting. With its smart receipts offering, PayPal will provide customers a receipt as well as personalized product recommendations from the same merchant. To say PayPal’s (PYPL -0.24%) stock has struggled over the past three years is a bit of an understatement. Heading into 2024, the stock saw negative returns the past three years, and it was down nearly 75% during that period.
Financial Calendars
The ETFMG Prime Mobile Payments ETF (IPAY -0.16%) had the largest allocation to PayPal stock in late 2023 at 5.5%. According to ETF.com, 288 ETFs held 109.6 million shares of PayPal as of late 2023. The biggest holder was the Invesco QQQ Trust (QQQ -1.19%), with 19.2 million shares. However, PayPal had a relatively small portfolio weighting at 0.5% of the ETF’s holdings. While that may seem bad, there is a good possibility that Chriss quickly learned his lesson and when the company issued its 2024 guidance, the plan was to underpromise and overdeliver. Given all the new promising offerings that PayPal is set to introduce, guidance appears to be conservative.
It is reasonable to expect, if no significant change happens to the e-commerce sector, PayPal stock price will continue its constant climb upwards. While nothing is certain, it is reasonable to expect electronic payments and digital currencies to become even more popular. Paypal’s acquisition of Venmo has also put them in a better position, capturing the millennial market. Total payment volume, which is the amount of money that flows through its payment processing system, has risen each quarter over the past few years, and growth in this metric accelerated in 2023.