Hedge funds and other institutional investors own 78.38% of the company’s stock. The company offers a digital payments system worldwide that supports online money transfers and serves as an electronic alternative to traditional paper methods. It posted mixed results in the last quarter, with revenues beating the consensus but earnings missing the mark. Further, the firm expects revenue growth of 6% y-o-y in https://www.forexlive.com/ the first quarter of FY2022, followed by Non-GAAP earnings of $0.87. Overall, the mixed results in Q and lower than expected guidance for Q1, added to the investor woes toward the stock. PayPal has a market capitalization of $110.56 billion and generates $25.37 billion in revenue each year. The credit services provider earns $4.17 billion in net income each year or $3.52 on an earnings per share basis.
- PayPal recently reported fourth-quarter earnings results that came in $0.01 below consensus estimates at $1.11 per share.
- Select analysts believe these well-known, high-growth stocks could soar.
- The market cap is close to my valuation range so I think the stock is reasonably valued.
- Meanwhile, Tipranks has PayPal stock as only a moderate buy, with just 29 of 40 analysts telling clients to buy it.
- PayPal’s stock was trading at $103.90 on March 11th, 2020 when COVID-19 reached pandemic status according to the World Health Organization.
PayPal is trading at a lower price-to-earnings ratio than Visa, indicating that it is currently the more affordable of the two stocks. In the future, PayPal will have to be open-minded about these revenue streams outside of payments as the transaction take rate continues to decline. X.com will be the seamless solution for personal finance management. A financial researcher and avid nasdaq PYPL investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Despite this large number, the fourth quarter saw a QoQ decline in new accounts of 26%, indicating that the company faces greater challenges in attracting new customers to the PayPal payment system. PayPal added 16 million new accounts during the same time period last year.
Humbled Nasdaq Stocks Ready To Bounce Back
New accounts, which grew extremely quickly during the pandemic and aided PayPal’s net revenue growth, appear to be harder to come by. In 2022, total accounts https://dotbig.com/markets/stocks/PYPL/ are expected to grow by only 15 million to 20 million, implying that PayPal will end the year with a total customer count of 441 million to 446 million.
One share of PYPL stock can currently be purchased for approximately $94.90. Earnings for PayPal are expected to grow by 33.33% in the coming year, from $3.42 to $4.56 per share.
Overall Marketrank
However, PayPal is slowing growth to focus on growing profit, leading some analysts to walk away. As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal Forex news trading style. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. © 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
In 2021, PayPal processed more than $1 trillion worth of payments for the first time in the company’s history. PayPal didn’t just set a new annual record, it exploded right past the record set in 2020 by processing an astounding $1.25 trillion worth of payments last year.