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An early version of PayPal as we know was launched in the late 1990s as a payments system for Palm Pilot users by a software company called Confinity. The company later merged with—an online banking company—and officially took the PayPal name in 2000. This version is designed to serve the needs of small online businesses, especially those who want to go global. It allows these businesses to accept dozens of credit cards in 135 currencies, using Stripe as a go-between.

  1. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
  2. Revenue growth also helps drive stock price appreciation, especially for companies earlier in their growth cycle.
  3. PayPal investors received 0.39 shares of eBay for each PayPal share they held.
  4. Earnings were under pressure due to heavy investments in its platform to improve the customer experience.
  5. It allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds.
  6. Still, one source familiar with the idea said it was unlikely that the trading service would roll out this year.

The COVID-19 pandemic temporarily masked that slowdown throughout 2020 as PayPal profited from the spike in online sales and peer-to-peer payments. But after the pandemic’s height passed, PayPal’s growth cooled off significantly. Its ongoing loss of eBay’s orders, fierce competition from other digital payment platforms, and intense macro best linux for network engineers headwinds for consumer spending all made it harder for PayPal to gain new customers and grow its revenue. 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.

PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California. 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 over 4 transactions per week.

Instead, they’re opting to bring on higher-value customers that will transact over the network more often, thus resulting in greater per-user fees for the business. To say that PayPal Holdings (PYPL 1.09%) had a difficult 2022 would be somewhat of an understatement. The digital payments behemoth saw its stock tank amid soaring inflation, rising interest rates, and a softer economic environment.

About PayPal Holdings, Inc.

For the current and next fiscal years, $29.63 billion and $31.92 billion estimates indicate +7.7% and +7.7% changes, respectively. If you’re shopping in the real world, you have many payment apps to choose from. PayPal broke into the mainstream as the preferred payment mechanism for eBay buyers and sellers. The auction site decided to acquire PayPal in 2002 and made it the site’s official payment service while working to expand its reach. Cash can be transferred to any email address or phone number, whether or not the recipient has a PayPal account. Five analysts have downgraded the company since December due to pressure on its margins and increased competition from Apple Pay, arguing that Paypal is moving too slowly on strategic initiatives.

Digital payments platform PayPal Holdings, Inc. (PYPL) is a longtime leader in this market, with wide acceptance among merchants and consumers alike. As PayPal brings on more individual users, its payments platform becomes more valuable to merchants because there are an increasing number of potential customers. As PayPal adds more merchant accounts, the number of places to shop — and the utility of being a user — rises for consumers. This positive feedback loop results in a company that gets stronger over time as it gets bigger. PayPal (PYPL 1.09%) is a leader in digital payments, which is why many investors seek to invest in PayPal stock.

Compared to the Zacks Consensus Estimate of $7.39 billion, the reported revenues represent a surprise of +0.37%. PayPal’s brands now include Xoom, Zettle, Hyperwallet, Honey, Happy Returns by PayPal, Chargehound, Paidy, and Simility. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. While the beleaguered stock has lost 75% over the past 12 months, it has seen some momentum recently. El-Assal of Barclays wrote that the general growth of U.S. commerce spending “reads-through positively” for PayPal’s June-quarter results.

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. Given all this, PayPal’s best bet to become a growth story once again is by winning the next era of payments technology. That era is likely to feature plenty of AI—which featured prominently in the company’s recent announcements—as well as stablecoins. PayPal is on the right track in both these areas, but it will also need plenty of luck if it’s going to hold its ground for the long term. In August 2023, payment processing giant PayPal announced the launch of its own stablecoin, PayPal USD (PYUSD).

Earnings Outlook

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. The 2022 speed bump caused shares to plunge, which has the stock trading at a very reasonable valuation. PayPal’s improving profitability, value-enhancing share repurchases, and attractive valuation mean it could be an incredibly enriching stock to buy for the long term. 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.

Industry, Sector and Symbol

This means it is launched on top of the Ethereum blockchain and is compatible with a wide range of Web3 applications. Ethereum has a substantial market lead in the space, with more than 50% of total value locked across DeFi, equivalent to more than $20 billion. With a peg to fiat currencies, stablecoins are designed to avoid the volatility that cryptocurrencies are so well known for. In essence, a stablecoin can be thought of as a tokenized version of a fiat currency—in the  case of PYUSD, that is the dollar. A stablecoin is a type of cryptocurrency that is pegged to a fiat currency.

Keep in mind that we can’t protect you from losses as a result of market volatility. Transferring cryptocurrency on the blockchain is also risky and your crypto may be delayed or lost. If all goes well and PYUSD catches on more broadly, PayPal will have a new source of growth at a time when it badly needs one. Shareholders are fed up with the company as its stock trades around $61, down over 80% from a pandemic-induced sugar high that saw PYPL reach a record $308.

Its revenue rose 8% year over year to $7.4 billion and exceeded analysts’ estimates by $20 million. Its adjusted earnings per share (EPS) grew 20% to $1.30 and cleared the consensus forecast by $0.07. One issue I have with the company is that I don’t really see much differentiation.

Here’s a step-by-step guide on buying PayPal shares and some factors to consider before investing in the fintech stock. Buy and sell cryptocurrencies directly from crypto wallets with the comfort of PayPal. PayPal works to prevent unauthorized transfers of cryptocurrency, and you may be eligible for reimbursement up to an equivalent of $50,0002 in the event of an unauthorized transfer.

Sobre Flávio Nese

Temos a experiência de mais de 30 anos em gestão de projetos na construção civil e na execução de obras de infraestrutura e predial. Prestamos serviços que abrangem: arquitetura evolutiva, diagnóstico de patologias prediais, inspeção física, documentação, certificações, projetos legais de acessibilidade, segurança, ANVISA, AVCB, regularização de edificações e gestão de projetos. A longa trajetória de atuação em projetos de urbanização, instalações industriais e atendimento aos setores da educação, condominial, hospitalar e comercial, contribuíram como experiência e aprendizagem para que a Nese se tornasse uma especialista em arquitetura diagnóstica e preventiva. Com o foco no aperfeiçoamento contínuo e nas melhores práticas, utilizamos ferramentas de gestão de projeto na prestação dos serviços, pois acreditamos que a otimização dos resultados técnicos e financeiros vem de uma relação colaborativa e transparente com os clientes.